The value of Hurst Green leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the remaining term is below than 80 years
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Hurst Green,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hurst Green valuers.
Muhammad owned a conversion apartment in Hurst Green being marketed with a lease of fraction over sixty years outstanding. Muhammad informally approached his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Muhammad to invoke his statutory right. Muhammad obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
In 2009 we were e-mailed by Dr Alicia Wilson who, having completed a basement flat in Hurst Green in April 2011. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Hurst Green with a long lease were in the region of £250,400. The average ground rent payable was £65 collected monthly. The lease finished on 10 February 2090. Considering the 64 years remaining we calculated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 plus expenses.
Mr and Mrs. F Clarke took over the lease of a purpose-built apartment in Hurst Green in June 2001. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical homes in Hurst Green with 100 year plus lease were in the region of £189,000. The average ground rent payable was £55 collected monthly. The lease finished on 6 July 2079. Considering the 53 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including legals.