There is no doubt about it a leasehold flat or house in Harrow is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 125 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Harrow will qualify for this right; that being said a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Harrow with in excess of 100 years outstanding 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 estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Harrow 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 conveyancing solicitor we work with provide it.
In recent months Jackson, started to get close to the 80-year mark with the lease on his garden flat in Harrow. Having bought his flat two decades ago, the unexpired term was of minimal relevance. Luckily, he realised he needed to take action soon on Extending the lease. Jackson arranged for a lease extension just under the wire last April. Jackson and the landlord who owned the flat above subsequently agreed on a premium of £6,000 . If the lease had dipped below 80 years, the amount would have gone up by at least £975.
Dr Caleb Bertrand completed a purpose-built apartment in Harrow in November 2002. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable flats in Harrow with an extended lease were in the region of £216,000. The average amount of ground rent was £60 invoiced annually. The lease ended in 2082. Given that there were 58 years outstanding we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.
An example of a Lease Extension decision for a Harrow flat is flat 93b Welldon Crescent in May 2009. The Tribunals valuation for a 90-year lease extension of this fat was £13,171 This case affected 1 flat. The number of years remaining on the existing lease(s) was 75.25 years.