The market value of Hartfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is below than 80 years
Leasehold properties in Hartfield with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors 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.
Sam owned a conversion apartment in Hartfield on the market with a lease of just over 59 years left. Sam on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Sam to invoke his statutory right. Sam obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Last September we were called by Mr and Mrs. T Petit , who owned a ground floor apartment in Hartfield in February 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative residencies in Hartfield with 100 year plus lease were worth £256,600. The average ground rent payable was £60 billed per annum. The lease elapsed on 18 July 2077. Considering the 52 years unexpired we estimated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 plus expenses.
In 2014 we were phoned by Mr and Mrs. N Kelly who, having completed a purpose-built apartment in Hartfield in August 2002. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical homes in Hartfield with an extended lease were worth £218,000. The average amount of ground rent was £45 invoiced quarterly. The lease finished in 2088. Given that there were 63 years outstanding we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including professional charges.