For anyone whose Hartfield property is held on a long lease, our message is clear – if no remedial action is taken, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Hartfield can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 dealing with Hartfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Felix was the the leasehold proprietor of a high value flat in Hartfield being sold with a lease of just over fifty eight years unexpired. Felix on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Felix to invoke his statutory right. Felix obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Dr O Miller bought a studio flat in Hartfield in January 1996. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Identical properties in Hartfield with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 invoiced monthly. The lease termination date was in 2102. Taking into account 76 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
In 2013 we were called by Mr Ben Brooks who, having moved into a one bedroom apartment in Hartfield in February 1995. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical residencies in Hartfield with a long lease were worth £176,200. The mid-range ground rent payable was £65 collected quarterly. The lease expiry date was on 5 June 2082. Taking into account 56 years unexpired we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 plus legals.