As the the remaining lease term of a Berkhamsted residential lease lessens so does its value and therefore the value of your property. If the lease has, more than one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner rather than later. Most flat owners in Berkhamsted will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Berkhamsted with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you enhanced control over the value of your Berkhamsted leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Elijah was the the leasehold proprietor of a conversion flat in Berkhamsted on the market with a lease of a little over sixty years remaining. Elijah informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be payable on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.
Last Christmas we were e-mailed by Mr and Mrs. L Robinson , who purchased a one bedroom apartment in Berkhamsted in June 2007. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparative homes in Berkhamsted with 100 year plus lease were valued around £260,000. The average ground rent payable was £50 invoiced every twelve months. The lease ran out in 2097. Taking into account 71 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
In 2010 we were called by Mr and Mrs. N Evans who, having acquired a first floor apartment in Berkhamsted in February 2004. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable properties in Berkhamsted with a long lease were worth £254,200. The mid-range amount of ground rent was £60 invoiced per annum. The lease finished on 27 July 2077. Taking into account 51 years left we approximated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of legals.