Hartford leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Hartford will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and steps to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Hartford leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Seth was the the leasehold proprietor of a high value apartment in Hartford on the market with a lease of fraction over 61 years outstanding. Seth informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Seth to exercise his statutory right. Seth obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.
Last Autumn we were called by Mr K Carter , who moved into a purpose-built flat in Hartford in March 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Similar premises in Hartford with 100 year plus lease were valued about £210,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ended on 6 February 2105. Having 80 years remaining we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
Mrs I Martínez completed a studio flat in Hartford in August 2010. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparable properties in Hartford with an extended lease were valued about £275,000. The mid-range amount of ground rent was £45 collected per annum. The lease finished in 2094. Considering the 69 years as a residual term we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.