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 becomes 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 must see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date 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 |
| 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. |
The lawyers that we work with undertake Harmondsworth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
After unsuccessful negotiations with the landlord of her ground floor flat in Harmondsworth, Kelsey initiated the lease extension process just as her lease was coming close to the crucial 80-year threshold. The transaction completed in April 2010. The landlord’s costs were kept to an absolute minimum.
In 2014 we were e-mailed by Mrs Morgan Lefèvre who, having bought a one bedroom apartment in Harmondsworth in March 1997. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparative homes in Harmondsworth with an extended lease were in the region of £295,000. The average amount of ground rent was £45 invoiced monthly. The lease end date was on 4 April 2100. Taking into account 74 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.
An example of a Freehold Enfranchisement case for a Harmondsworth property 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 lease term was 69 years.