Harold Wood leases on domestic deteriorating in value. if your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Harold Wood will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some cases you may not qualify. There are prescribed deadlines and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Harold Wood with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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. |
Lease extensions in Harold Wood can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Harold Wood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Logan, started to get close to the 80-year threshold with the lease on his basement flat in Harold Wood. Having bought his property two decades ago, the length of the lease was of minimal significance. Fortunately, he recognised he would soon be paying an inflated amount for Extending the lease. Logan arranged for a lease extension just ahead of time last July. Logan and the landlord who owned the flat above subsequently settled on a premium of £6,000 . If the lease had slid to less than 80 years, the price would have increased by a minimum £900.
Last Autumn we were called by Mr E Lewis , who bought a first floor apartment in Harold Wood in November 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Comparable residencies in Harold Wood with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 billed yearly. The lease finished in 2095. Considering the 71 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
An example of a Lease Extension decision for a Harold Wood 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 affected 1 flat. The unexpired lease term was 57.5 years.