Harmondsworth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Harmondsworth tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Harmondsworth you should investigate if your lease has between seventy and ninety years left. There are good reasons why a Harmondsworth flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is put in place without delay
Leasehold residencies in Harmondsworth with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Engaging our service will provide you increased control over the value of your Harmondsworth leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the landlord of her basement apartment in Harmondsworth, Rosie started the lease extension process just as the lease was approaching the crucial eighty-year threshold. The transaction completed in October 2010. The landlord’s fees were kept to an absolute minimum.
Ms Caitlin Bell owned a basement flat in Harmondsworth in August 2009. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparative properties in Harmondsworth with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £65 collected yearly. The lease concluded on 25 May 2093. Given that there were 68 years unexpired we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Harmondsworth premises is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case related to 2 flats. The unexpired residue of the current lease was 69 years.