Unfortunately that a Hartfield residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Hartfield property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be payable. Most flat owners in Hartfield will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. 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 throughout the process.
Leasehold premises in Hartfield with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Lease extensions in Hartfield can be a difficult process. We recommend you secure guidance from a lawyer 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 a wealth of experience 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.
Two years ago Hunter, came perilously near to the eighty-year threshold with the lease on his garden flat in Hartfield. In buying his property two decades ago, the unexpired term was of minimal significance. Fortunately, he realised he needed to take action soon on a lease extension. Hunter extended the lease just under the wire in July. Hunter and the freeholder via the managing agents ultimately settled on an amount of £5,500 . If he failed to meet the deadline, the sum would have gone up by at least £975.
In 2013 we were phoned by Mr K David who, having completed a first floor apartment in Hartfield in August 2005. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparative residencies in Hartfield with an extended lease were worth £168,800. The mid-range ground rent payable was £60 invoiced monthly. The lease termination date was in 2080. Having 55 years as a residual term we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of legals.
Last Christmas we were called by Mr and Mrs. Y Rogers , who took over the lease of a purpose-built flat in Hartfield in January 2000. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical flats in Hartfield with an extended lease were valued about £235,200. The mid-range ground rent payable was £45 invoiced every twelve months. The lease ended in 2091. Considering the 66 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.