Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Hungerford. Inevitably, the period of lease left shortens over time. This is often overlooked and only raises itself as an issue when the property has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Hungerford have the right to extend the lease for a further ninety years under Leasehold Reform legislation. You should give due attention before putting off your Hungerford lease extension. Putting off that expense now only increases the price you will ultimately incur to extend your lease
Leasehold properties in Hungerford with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Hungerford 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.
In 2014 Finn, started to get close to the 80-year mark with the lease on his garden flat in Hungerford. In buying his property twenty years previously, the unexpired term was of little relevance. by good luck, it dawned on him that he would soon be paying an inflated amount for a lease extension. Finn was able to extend his lease just in the nick of time last July. Finn and the freeholder via the managing agents in the end agreed on sum of £5,500 . If he had missed the deadline, the price would have gone up by at least £1,025.
In 2012 we were approached by Dr Phoebe Díaz who, having owned a one bedroom apartment in Hungerford in August 1997. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Comparative premises in Hungerford with 100 year plus lease were in the region of £181,600. The average ground rent payable was £55 collected annually. The lease concluded on 15 October 2077. Considering the 52 years as a residual term we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus professional charges.
In 2014 we were e-mailed by Mr and Mrs. S Martínez who, having moved into a purpose-built apartment in Hungerford in May 1999. We are asked if we could estimate the price would be for a 90 year extension to my lease. Similar residencies in Hungerford with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 billed yearly. The lease finished on 23 February 2097. Given that there were 72 years left we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 plus fees.