Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Hungerford. Clearly, the term of lease remaining reduces over time. This is often ignored and only raises itself as an issue when the property has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Hungerford have the legal entitlement to extend the lease for a further ninety years under legislation. You should give careful attention before delaying your Hungerford lease extension. Putting off the cost now simply increases the price you will ultimately incur to extend your lease
Leasehold properties in Hungerford with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Hungerford can be a difficult process. We recommend you procure 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 Hungerford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Benjamin was the the leasehold owner of a 2 bedroom flat in Hungerford being marketed with a lease of fraction over 61 years outstanding. Benjamin informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Mr and Mrs. R Díaz bought a ground floor flat in Hungerford in September 2006. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar premises in Hungerford with an extended lease were valued around £233,200. The average ground rent payable was £60 collected per annum. The lease termination date was on 5 January 2087. Having 61 years left we estimated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of professional charges.
In 2013 we were phoned by Mr Finn Bonnet who, having acquired a recently refurbished apartment in Hungerford in February 1998. The question was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar flats in Hungerford with an extended lease were valued about £171,800. The mid-range amount of ground rent was £55 billed monthly. The lease ended on 7 July 2076. Taking into account 50 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of legals.