When it comes to residential leasehold property in Hartford, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Residents in Hartford with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has under 80 years remaining, under the relevant statute the freeholder can calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Hartford can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in lease extensions.
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 Hartford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Caleb was the the leasehold owner of a conversion flat in Hartford being marketed with a lease of just over sixty years outstanding. Caleb informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Dr Samantha Leroy purchased a newly refurbished flat in Hartford in August 2010. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Similar premises in Hartford with a long lease were worth £252,800. The average amount of ground rent was £65 billed quarterly. The lease expired in 2090. Having 65 years unexpired we approximated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus expenses.
In 2014 we were contacted by Dr L Alexander who, having took over the lease of a ground floor flat in Hartford in May 1996. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical flats in Hartford with an extended lease were in the region of £191,400. The mid-range ground rent payable was £55 billed every twelve months. The lease elapsed on 21 March 2079. Taking into account 54 years remaining we calculated the premium to the landlord to extend the lease to be within £34,200 and £39,600 exclusive of fees.