Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Harwich. Clearly, the term of lease remaining reduces over time. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Harwich have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Please give due deliberation before putting off your Harwich lease extension. Holding off the cost now likely increases the price you will ultimately have to pay to extend your lease
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Harwich can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in lease extensions.
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 a wealth of experience dealing with Harwich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Archie owned a studio flat in Harwich being marketed with a lease of fraction over 61 years outstanding. Archie informally approached his freeholder 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 subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Archie to invoke his statutory right. Archie obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
In 2013 we were phoned by Mr S Jackson who, having took over the lease of a studio flat in Harwich in January 2010. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar properties in Harwich with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 collected per annum. The lease came to a finish on 14 May 2104. Considering the 79 years left we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.
Last Summer we were contacted by Mr and Mrs. C Ward , who took over the lease of a one bedroom apartment in Harwich in January 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Comparative homes in Harwich with a long lease were valued around £193,400. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease expiry date was on 13 March 2084. Considering the 59 years outstanding we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.