It’s a harsh certainty that a Hurst Green residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Hurst Green property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be payable. The majority of flat owners in Hurst Green will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancers that we work with undertake Hurst Green lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
During the course of the last few months Elijah, came precariously near to the 80-year threshold with the lease on his first floor apartment in Hurst Green. Having bought his property two decades ago, the lease term was of little significance. Fortunately, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Elijah was able to extend his lease just ahead of time in April. Elijah and the freeholder ultimately agreed on an amount of £5,500 . If the lease had slipped below eighty years, the sum would have become more exhorbitant by a minimum £925.
Last Christmas we were contacted by Ms Rosie Jackson , who bought a ground floor flat in Hurst Green in April 2010. The question was if we could approximate the price would be to prolong the lease by ninety years. Similar homes in Hurst Green with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ended on 21 May 2102. Having 77 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Dr Bethan Adams purchased a studio apartment in Hurst Green in March 2003. The question was if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparative homes in Hurst Green with a long lease were worth £265,200. The mid-range amount of ground rent was £65 billed monthly. The lease elapsed on 3 January 2091. Taking into account 66 years left we approximated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 not including fees.