The 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 escalate substantially once the unexpired lease term is below than 80 years
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Hartfield leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Daniel owned a high value flat in Hartfield on the market with a lease of fraction over 61 years unexpired. Daniel informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Daniel to exercise his statutory right. Daniel obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Mr U Bennett bought a one bedroom apartment in Hartfield in April 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparable properties in Hartfield with an extended lease were worth £227,800. The mid-range ground rent payable was £45 billed every twelve months. The lease lapsed in 2091. Taking into account 65 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.
Mr T Clark took over the lease of a purpose-built flat in Hartfield in April 2003. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Comparable residencies in Hartfield with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 billed every twelve months. The lease termination date was in 2102. Taking into account 76 years remaining we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.