When it comes to domestic leasehold property in Hungerford, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Anyone in Hungerford with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has below 80 years outstanding, under the current Act the freeholder is entitled to calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hungerford can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Hungerford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Oliver, started to get near to the eighty-year threshold with the lease on his first floor flat in Hungerford. Having purchased his flat two decades ago, the unexpired term was of little interest. by good luck, he realised he needed to take action soon on Extending the lease. Oliver arranged for a lease extension just under the wire in May. Oliver and the freeholder via the management company ultimately settled on a premium of £5,500 . If the lease had slipped lower than eighty years, the amount would have escalated by a minimum £950.
In 2009 we were e-mailed by Mr and Mrs. V Smith who, having acquired a newly refurbished flat in Hungerford in November 2010. The dilemma was if we could approximate the price could be for a 90 year lease extension. Comparative flats in Hungerford with an extended lease were worth £257,800. The mid-range ground rent payable was £65 collected yearly. The lease lapsed on 14 February 2091. Taking into account 65 years as a residual term we estimated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including expenses.
In 2011 we were e-mailed by Mr and Mrs. J Lee who, having owned a one bedroom apartment in Hungerford in April 2003. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparable residencies in Hungerford with 100 year plus lease were valued around £196,400. The average ground rent payable was £55 collected yearly. The lease lapsed in 2080. Given that there were 54 years remaining we estimated the compensation to the freeholder for the lease extension to be between £35,200 and £40,600 exclusive of legals.