When it comes to residential leasehold property in Hartfield, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are less than 80 years left. Residents in Hartfield with a lease approaching 81 years left should seriously think of extending it sooner than later. When a lease has under eighty years left, under the current Act the freeholder is entitled to calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a property with more than 100 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 residence will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Lease extensions in Hartfield can be a difficult process. We recommend you procure guidance from a conveyancer 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 in-depth market knowledge procuring Hartfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Teddy was the the leasehold proprietor of a 2 bedroom apartment in Hartfield on the market with a lease of fraction over 61 years unexpired. Teddy on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Teddy to invoke his statutory right. Teddy procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the property.
Dr H Reed moved into a recently refurbished flat in Hartfield in June 2012. We are asked 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 residencies in Hartfield with 100 year plus lease were in the region of £245,000. The mid-range amount of ground rent was £45 billed monthly. The lease expired in 2094. Considering the 68 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
In 2014 we were phoned by Dr Y Michel who, having was assigned a lease of a newly refurbished apartment in Hartfield in January 2002. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable residencies in Hartfield with a long lease were valued around £285,000. The mid-range ground rent payable was £55 billed monthly. The lease concluded on 2 November 2105. Having 79 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.