Harold Park leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Harold Park enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Harold Park you should see if your lease has between seventy and ninety years left. There are compelling reasons why a Harold Park leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is put in place without delay
Leasehold properties in Harold Park with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Harold Park,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Harold Park valuers.
Oscar was the the leasehold proprietor of a conversion apartment in Harold Park being marketed with a lease of fraction over 72 years remaining. Oscar informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2012 we were called by Ms Robyn Patel who, having completed a basement apartment in Harold Park in March 2006. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Identical flats in Harold Park with a long lease were valued around £223,400. The average ground rent payable was £60 collected annually. The lease finished on 16 February 2083. Having 59 years as a residual term we calculated the premium to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of costs.
An example of a Lease Extension case for a Harold Park flat is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case related to 1 flat. The remaining number of years on the lease was 57.5 years.