Hungerford residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold premises in Hungerford with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| Yorkshire 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. |
Retaining our service gives you better control over the value of your Hungerford leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Oscar was the the leasehold owner of a high value apartment in Hungerford being marketed with a lease of a little over 59 years unexpired. Oscar on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Oscar to invoke his statutory right. Oscar procured expert legal guidance and secured satisfactory deal informally and sell the property.
In 2011 we were contacted by Mr and Mrs. U Robinson who, having was assigned a lease of a basement apartment in Hungerford in March 2004. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar homes in Hungerford with a long lease were valued around £201,200. The mid-range amount of ground rent was £55 collected yearly. The lease lapsed in 2082. Considering the 56 years outstanding we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including fees.
In 2014 we were e-mailed by Dr O Robinson who, having purchased a one bedroom apartment in Hungerford in February 2000. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparable flats in Hungerford with a long lease were worth £300,000. The average amount of ground rent was £50 billed yearly. The lease came to a finish on 21 April 2102. Taking into account 76 years unexpired we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.