With a domestic leasehold premises in Hungerford, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Residents in Hungerford with a lease drawing near to 81 years left should seriously think of extending it sooner as opposed to later. Once the lease term has below eighty years left, under the relevant Act the freeholder is entitled to calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Chelsea 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Hungerford,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hungerford valuers.
In 2014 Seth, came perilously close to the 80-year mark with the lease on his one bedroom apartment in Hungerford. In buying his property 19 years ago, the unexpired term was of no bearing. Thankfully, he became aware that he needed to take action soon on Extending the lease. Seth was able to extend his lease just in the nick of time in May. Seth and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If the lease had fallen below 80 years, the sum would have increased by a minimum £850.
Dr A Parker owned a ground floor apartment in Hungerford in September 1999. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparable homes in Hungerford with 100 year plus lease were in the region of £198,800. The average ground rent payable was £55 invoiced monthly. The lease elapsed in 2079. Given that there were 55 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 plus fees.
Ms Naomi Cox moved into a recently refurbished flat in Hungerford in October 1995. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar homes in Hungerford with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease terminated on 23 June 2099. Considering the 75 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.