Harrold residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Harrold can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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 Harrold lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of unsuccessful correspondence with the freeholder of her basement apartment in Harrold, Jodie commenced the lease extension process as the eighty year threshold was quickly nearing. The legal work was concluded in September 2005. The landlord’s charges were kept to an absolute minimum.
Dr U Gunderson purchased a purpose-built apartment in Harrold in September 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Harrold with 100 year plus lease were worth £265,000. The average amount of ground rent was £50 billed annually. The lease ran out in 2098. Taking into account 73 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
Last Christmas we were phoned by Mrs Y Lefebvre , who took over the lease of a ground floor flat in Harrold in October 2003. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Identical premises in Harrold with an extended lease were in the region of £264,000. The average ground rent payable was £60 invoiced quarterly. The lease elapsed on 28 November 2078. Having 53 years unexpired we estimated the premium to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of legals.