The re-sale value of a leasehold property in South Harrow is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that all matters can be concluded well before the eighty year mark. Leasehold Reform legislation entitles South Harrow qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | 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. |
| 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 South Harrow can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 procuring South Harrow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finley owned a studio apartment in South Harrow being sold with a lease of a few days over 72 years remaining. Finley on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Finley to invoke his statutory right. Finley obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. B Mason moved into a one bedroom apartment in South Harrow in October 2007. The question was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable premises in South Harrow with 100 year plus lease were in the region of £218,000. The average amount of ground rent was £45 billed annually. The lease concluded on 11 November 2088. Given that there were 63 years outstanding we calculated the premium to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of legals.
An example of a Lease Extension case for a South Harrow property is GFF 1 Holyrood Avenue in May 2014. The Tenant wished to acquire a new (extended) lease and applied to the Willesden County Court who granted a vesting order on 20* March2013. The Tribunal decied that the premium to be paid was £9,062 This case related to 1 flat. The unexpired lease term was 79 years.