Hartfield residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Hartfield leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the freeholder of her ground floor flat in Hartfield, Catherine commenced the lease extension process just as the lease was coming close to the critical 80-year threshold. The lease extension was concluded in April 2011. The freeholder’s costs were negotiated to a tad over 700 GBP.
Last Autumn we were phoned by Mrs U Hall , who owned a purpose-built apartment in Hartfield in February 2010. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Hartfield with 100 year plus lease were valued about £285,000. The average ground rent payable was £55 invoiced monthly. The lease terminated in 2106. Considering the 80 years remaining we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.
In 2012 we were phoned by Mrs I Murphy who, having was assigned a lease of a basement flat in Hartfield in August 2000. The question was if we could approximate the price could be to prolong the lease by ninety years. Comparable residencies in Hartfield with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 billed yearly. The lease finished in 2086. Given that there were 60 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 not including professional charges.