When it comes to residential leasehold property in Hurst, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are less than eighty years left. Anyone in Hurst with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once a lease has less than eighty years remaining, under the relevant legislation the freeholder can calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with procure Hurst 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.
After protracted correspondence with the landlord of her studio flat in Hurst, Freya started the lease extension process just as her lease was nearing the crucial eighty-year mark. The lease extension completed in November 2014. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were approached by Mr and Mrs. H Clark who, having took over the lease of a purpose-built flat in Hurst in July 2002. The question was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Identical flats in Hurst with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced annually. The lease ran out on 1 June 2098. Taking into account 73 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
In 2014 we were called by Mr and Mrs. M Parker who, having bought a recently refurbished apartment in Hurst in January 2012. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative properties in Hurst with an extended lease were worth £240,600. The mid-range ground rent payable was £60 collected yearly. The lease lapsed in 2087. Having 62 years left we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including professional charges.