The only way is down when it comes to Hartfield lease terms. Hartfield properties that have a remaining term fewer than eighty years will de-escalate in value even faster, and the cost of extending your lease will increase.
Leasehold premises in Hartfield with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 lawyers that we work with undertake Hartfield 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 lawyer we work with provide it.
Connor owned a studio apartment in Hartfield on the market with a lease of a little over sixty years remaining. Connor on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Connor to invoke his statutory right. Connor obtained expert advice and secured an acceptable resolution without resorting to tribunal and sell the property.
Dr Natasha Gray purchased a studio flat in Hartfield in October 2007. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Similar residencies in Hartfield with a long lease were valued about £255,000. The mid-range amount of ground rent was £50 invoiced annually. The lease ran out in 2096. Having 71 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Mr and Mrs. T Williams completed a first floor apartment in Hartfield in July 2004. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical premises in Hartfield with 100 year plus lease were valued around £254,200. The mid-range ground rent payable was £60 invoiced per annum. The lease finished in 2076. Considering the 51 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 plus legals.