Harwich leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Harwich enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Harwich you really ought to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Harwich with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
The conveyancers that we work with procure Harwich lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Twenty four months ago Caleb, started to get close to the eighty-year mark with the lease on his leasehold apartment in Harwich. Having bought his property twenty years previously, the unexpired term was of no relevance. Luckily, he realised he needed to take steps soon on Extending the lease. Caleb extended the lease just under the wire in May. Caleb and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If he failed to meet the deadline, the price would have escalated by a minimum £1,025.
Dr K Scott bought a studio apartment in Harwich in November 1999. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable homes in Harwich with 100 year plus lease were worth £173,800. The average ground rent payable was £60 billed monthly. The lease finished on 2 July 2080. Considering the 55 years left we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of expenses.
Mr U Ricardo was assigned a lease of a garden flat in Harwich in October 2001. The question was if we could approximate the price could be to prolong the lease by an additional years. Comparative homes in Harwich with an extended lease were valued around £235,200. The average ground rent payable was £45 invoiced quarterly. The lease termination date was in 2091. Taking into account 66 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.