The closer a residential lease in Hungerford nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 100 years remaining then this decrease may be fractional however there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending without delay. Many flat owners in Hungerford will qualify for this right; that being said a lawyer will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Hungerford,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hungerford valuers.
In 2014 Caleb, came seriously close to the 80-year threshold with the lease on his leasehold flat in Hungerford. In buying his home two decades ago, the length of the lease was of little interest. by good luck, he recognised he needed to take steps soon on a lease extension. Caleb extended the lease just ahead of time last June. Caleb and the landlord ultimately settled on a premium of £6,000 . If the lease had dipped lower than eighty years, the sum would have increased by at least £1,100.
Last Christmas we were phoned by Ms Amy Sánchez , who was assigned a lease of a purpose-built flat in Hungerford in June 1996. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Identical homes in Hungerford with a long lease were worth £206,200. The mid-range amount of ground rent was £60 collected yearly. The lease ended on 22 October 2081. Having 56 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including legals.
Last Summer we were called by Mr and Mrs. D Mercier , who purchased a ground floor apartment in Hungerford in September 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Hungerford with 100 year plus lease were in the region of £300,000. The mid-range ground rent payable was £50 billed monthly. The lease came to a finish on 14 October 2101. Having 76 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.