It’s a harsh certainty that a Hartfield residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Hartfield property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Hartfield will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold properties in Hartfield with in excess of 100 years outstanding 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Halifax | |
| Santander | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Hartfield,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hartfield valuers.
Jack owned a high value flat in Hartfield on the market with a lease of just over 72 years outstanding. Jack informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Jack to exercise his statutory right. Jack procured expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Mr and Mrs. C Brooks moved into a studio flat in Hartfield in February 2009. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative properties in Hartfield with a long lease were valued around £200,800. The mid-range amount of ground rent was £65 collected yearly. The lease finished on 8 September 2086. Having 60 years left we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including legals.
Last month we were called by Dr Isobel Roberts , who completed a one bedroom flat in Hartfield in August 2009. We are asked if we could estimate the price would be for a ninety year lease extension. Comparative properties in Hartfield with 100 year plus lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease elapsed in 2097. Considering the 71 years outstanding we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.