The only way is down when it comes to South Harrow lease terms. South Harrow properties that have a lease term shorter than 80 years will de-escalate in value at a rapid rate, and the cost of extending your lease will rise.
It is conventional wisdom that a residential leasehold with over 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 equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your South Harrow leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Hunter, came seriously near to the 80-year threshold with the lease on his leasehold flat in South Harrow. Having bought his flat twenty years ago, the lease term was of little importance. by good luck, he realised he needed to take steps soon on a lease extension. Hunter was able to extend his lease just in the nick of time in April. Hunter and the freeholder ultimately settled on a premium of £5,500 . If the lease had gone lower than eighty years, the amount would have escalated by a minimum £1,025.
Dr B Hill completed a one bedroom apartment in South Harrow in February 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Identical properties in South Harrow with a long lease were worth £255,000. The average amount of ground rent was £50 billed annually. The lease elapsed on 13 June 2096. Given that there were 70 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.
An example of a Lease Extension decision for a South Harrow property is GFF 1 Holyrood Avenue in May 2014. The Tenant wished to acquire a new (extended) lease and applied to the Willesden County Court who granted a vesting order on 20* March2013. The Tribunal decied that the premium to be paid was £9,062 This case was in relation to 1 flat. The unexpired term was 79 years.