The market value of Hartfield 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 significantly once the unexpired lease term is less than eighty years
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Lease extensions in Hartfield can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in this area.
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 in-depth market knowledge procuring Hartfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the landlord of her garden apartment in Hartfield, Natasha started the lease extension process as the eighty year deadline was swiftly coming. The lease extension completed in July 2006. The landlord’s costs were kept to an absolute minimum.
Dr T Khan owned a studio apartment in Hartfield in April 2001. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Hartfield with a long lease were valued about £260,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ended on 11 July 2098. Taking into account 72 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.
In 2014 we were phoned by Dr Jade Richardson who, having bought a purpose-built apartment in Hartfield in June 2007. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Identical flats in Hartfield with 100 year plus lease were valued about £256,600. The average ground rent payable was £60 invoiced every twelve months. The lease terminated in 2078. Considering the 52 years unexpired we approximated the premium to the landlord for the lease extension to be between £41,800 and £48,400 not including professional charges.