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 seen longer and shorter terms in Hartfield. Clearly, the term of lease left shortens as time goes by. This may pass by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible leaseholders in Hartfield have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give due consideration before delaying your Hartfield lease extension. Holding off that expense now simply increases the price you will eventually have to pay to extend your lease
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| 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 lawyer and surveyor with experience in this area.
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 Hartfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the landlord of her leasehold apartment in Hartfield, Jordan started the lease extension process as the eighty year deadline was quickly nearing. The legal work was concluded in July 2005. The landlord’s costs were negotiated to less than 600 pounds.
In 2014 we were e-mailed by Dr A Robinson who, having took over the lease of a basement flat in Hartfield in March 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Comparative premises in Hartfield with an extended lease were valued around £246,800. The mid-range amount of ground rent was £60 collected yearly. The lease ended on 3 July 2076. Having 50 years outstanding we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of expenses.
In 2014 we were called by Mr and Mrs. F Ramírez who, having was assigned a lease of a recently refurbished flat in Hartfield in November 2006. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar premises in Hartfield with 100 year plus lease were in the region of £203,200. The average amount of ground rent was £65 billed annually. The lease elapsed in 2087. Considering the 61 years left we approximated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 plus expenses.