Hackbridge leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Hackbridge will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not qualify. There are also strict timetables and formalities to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Hackbridge with more than 100 years unexpired on the lease are often referred to as ‘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 to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hackbridge can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Hackbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted correspondence with the freeholder of her purpose-built flat in Hackbridge, Megan commenced the lease extension process as the eighty year mark was rapidly nearing. The legal work was finalised in July 2007. The freeholder’s fees were negotiated to approximately four hundred GBP.
Dr F Thomas moved into a basement flat in Hackbridge in October 1996. We are asked if we could approximate the premium would be to extend the lease by 90 years. Comparative premises in Hackbridge with an extended lease were valued around £295,000. The mid-range ground rent payable was £45 invoiced per annum. The lease terminated in 2100. Taking into account 75 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
An example of a Freehold Enfranchisement decision for a Hackbridge premises is 21 & 23 Carshalton Grove in May 2009. the Tribunal adopted the figures presented as the premiums payable by the Applicant i.e. a total of £20,750. This case was in relation to 2 flats. The remaining number of years on the lease was 72 years.