Harold Park leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Harold Park will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not qualify. There are prescribed timetables and procedures to comply with once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Harold Park,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Harold Park valuers.
Eli was the the leasehold proprietor of a conversion apartment in Harold Park being sold with a lease of a few days over 72 years left. Eli on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Eli to exercise his statutory right. Eli procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the property.
In 2009 we were contacted by Mr Oscar Clarke who, having purchased a one bedroom flat in Harold Park in October 2007. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparative properties in Harold Park with an extended lease were worth £181,600. The mid-range ground rent payable was £55 billed monthly. The lease came to a finish in 2077. Taking into account 52 years unexpired we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of expenses.
An example of a Lease Extension case for a Harold Park residence 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 unexpired term as at the valuation date was 57.5 years.