Hartford residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
Leasehold residencies in Hartford with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Hartford,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hartford valuers.
Luca was the the leasehold proprietor of a studio apartment in Hartford on the market with a lease of a few days over 61 years outstanding. Luca on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Luca to exercise his statutory right. Luca procured expert advice and secured satisfactory resolution informally and readily saleable.
Last Spring we were contacted by Mr and Mrs. C Jackson , who acquired a one bedroom apartment in Hartford in November 2004. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical homes in Hartford with a long lease were valued around £216,000. The average amount of ground rent was £60 invoiced per annum. The lease elapsed on 13 March 2084. Given that there were 58 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of fees.
Dr T García owned a recently refurbished apartment in Hartford in August 2009. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Identical properties in Hartford with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease expiry date was in 2104. Given that there were 78 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.