With a residential leasehold property in Hartfield, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Leasehold owners in Hartfield with a lease nearing 81 years left should seriously think of extending it as soon as possible. When a lease has under eighty years remaining, under the relevant statute the landlord is entitled to calculate and demand a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Hartfield with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Hartfield can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in lease extensions.
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 dealing with Hartfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Arthur owned a 2 bedroom flat in Hartfield on the market with a lease of a few days over 72 years unexpired. Arthur on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Arthur to exercise his statutory right. Arthur procured expert advice and was able to make a more informed decision and handle with the matter and sell the property.
Last Christmas we were approach by Mr O López , who purchased a studio apartment in Hartfield in November 1998. The dilemma was if we could estimate the price would be to extend the lease by an additional years. Comparative premises in Hartfield with 100 year plus lease were worth £203,200. The mid-range ground rent payable was £65 billed yearly. The lease terminated on 21 June 2087. Considering the 61 years remaining we approximated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 not including expenses.
Last Autumn we were phoned by Mrs A Lefèvre , who bought a first floor flat in Hartfield in March 1998. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Comparative flats in Hartfield with an extended lease were in the region of £260,000. The average ground rent payable was £50 invoiced yearly. The lease end date was on 5 February 2098. Given that there were 72 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.