Hartfield leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Hartfield residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Hartfield you should see if your lease has between 70 and ninety years left. There are compelling reasons why a Hartfield leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Hartfield,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hartfield valuers.
In 2014 Charlie, started to get close to the 80-year mark with the lease on his leasehold apartment in Hartfield. In buying his property two decades ago, the unexpired term was of no concern. by good luck, he recognised he would imminently be paying an inflated amount for Extending the lease. Charlie was able to extend his lease at the eleventh hour last August. Charlie and the landlord subsequently settled on the final figure of £6,000 . If he failed to meet the deadline, the amount would have escalated by at least £950.
Last Christmas we were called by Ms N Miller , who completed a purpose-built flat in Hartfield in September 2010. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Comparative properties in Hartfield with a long lease were valued about £250,000. The mid-range amount of ground rent was £50 collected annually. The lease finished on 7 May 2095. Considering the 69 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
In 2013 we were contacted by Mr and Mrs. S Ward who, having acquired a purpose-built apartment in Hartfield in June 2009. The question was if we could estimate the price could be for a 90 year extension to my lease. Comparable premises in Hartfield with 100 year plus lease were valued around £285,000. The average amount of ground rent was £55 billed annually. The lease terminated on 19 July 2106. Considering the 80 years outstanding we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.