Hurst Green leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Hurst Green residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hurst Green you would be well advised to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Hurst Green with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors 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 lawyer we work with provide it.
Subsequent to protracted correspondence with the freeholder of her garden flat in Hurst Green, Alice initiated the lease extension process just as the lease was approaching the all-important eighty-year mark. The legal work was finalised in January 2008. The freeholder’s charges were restricted to under 500 pounds.
Last August we were phoned by Ms K Brown , who owned a one bedroom flat in Hurst Green in May 1999. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Identical flats in Hurst Green with 100 year plus lease were in the region of £198,800. The average ground rent payable was £55 collected annually. The lease expired on 16 July 2081. Taking into account 55 years outstanding we calculated the premium to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of legals.
Dr T Martin owned a studio apartment in Hurst Green in November 2002. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable properties in Hurst Green with a long lease were valued about £300,000. The average ground rent payable was £50 collected every twelve months. The lease terminated on 21 April 2101. Considering the 75 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.