The market value of a leasehold property in Hartfield is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be concluded well before the 80 year mark. Statute enables Hartfield qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Hartfield with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service gives you increased control over the value of your Hartfield leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful negotiations with the landlord of her leasehold flat in Hartfield, Isobel initiated the lease extension process just as the lease was approaching the critical 80-year threshold. The legal work completed in September 2015. The landlord’s fees were negotiated to a tad over 500 pounds.
Dr E Mercier bought a studio apartment in Hartfield in September 2006. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Hartfield with an extended lease were worth £183,600. The mid-range amount of ground rent was £65 collected quarterly. The lease ran out in 2083. Given that there were 57 years outstanding we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus legals.
In 2014 we were e-mailed by Mr Arthur Michel who, having owned a garden flat in Hartfield in May 2011. The dilemma was if we could approximate the price would be for a ninety year lease extension. Similar flats in Hartfield with 100 year plus lease were in the region of £245,000. The average ground rent payable was £45 invoiced every twelve months. The lease ran out in 2094. Having 68 years outstanding we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.