The 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 increase substantially once the unexpired lease term is less than eighty years
Leasehold properties in Hartfield with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers 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 conveyancing solicitor we work with provide it.
Ethan owned a studio apartment in Hartfield on the market with a lease of just over 72 years left. Ethan on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Ethan to exercise his statutory right. Ethan obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Last year we were e-mailed by Mrs J Harris , who acquired a recently refurbished flat in Hartfield in September 2003. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Identical homes in Hartfield with a long lease were valued about £255,000. The mid-range amount of ground rent was £50 collected monthly. The lease expired in 2097. Taking into account 71 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
Dr Natalie Morris acquired a garden apartment in Hartfield in March 2001. The dilemma was if we could approximate the price could be to prolong the lease by a further 90 years. Identical properties in Hartfield with 100 year plus lease were valued around £254,200. The average amount of ground rent was £60 collected quarterly. The lease expired in 2077. Having 51 years left we estimated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 plus fees.