Market Harborough leases on residential properties are gradually losing value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Market Harborough will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Using our service gives you enhanced control over the value of your Market Harborough leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy discussions with the freeholder of her two bedroom apartment in Market Harborough, Eleanor initiated the lease extension process as the eighty year mark was rapidly coming. The lease extension was concluded in March 2008. The landlord’s fees were restricted to approximately 550 GBP.
In 2014 we were approached by Dr B Bennett who, having completed a garden apartment in Market Harborough in June 1998. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Market Harborough with a long lease were valued around £264,000. The average amount of ground rent was £60 invoiced every twelve months. The lease expiry date was in 2079. Given that there were 53 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 not including legals.
In 2012 we were contacted by Dr V Ramírez who, having bought a basement apartment in Market Harborough in August 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Market Harborough with a long lease were in the region of £220,400. The mid-range ground rent payable was £45 invoiced every twelve months. The lease ended on 22 September 2090. Given that there were 64 years remaining we calculated the premium to the landlord to extend the lease to be within £16,200 and £18,600 not including professional charges.