With a long leasehold property in Hartford, you are in fact renting it for a certain amount 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 may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than 80 years remaining. Leasehold owners in Hartford with a lease nearing 81 years left should seriously consider extending it sooner than later. Once the lease term has below eighty years remaining, under the relevant Act the freeholder is entitled to calculate and demand a larger amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
Lender | Requirement |
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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. |
Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
National Westminster Bank | Mortgage term plus 30 years. |
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. |
Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Hartford,the lease extension solicitors that we work with will always be happy 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.
After protracted correspondence with the landlord of her purpose-built apartment in Hartford, Yasmin started the lease extension process as the eighty year mark was quickly coming. The transaction completed in July 2005. The freeholder’s fees were kept to an absolute minimum.
Dr Jodie Jackson was assigned a lease of a ground floor apartment in Hartford in April 1995. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative homes in Hartford with 100 year plus lease were in the region of £184,000. The mid-range ground rent payable was £55 billed every twelve months. The lease expired on 12 August 2078. Given that there were 53 years left we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus expenses.
In 2012 we were e-mailed by Mrs K Khan who, having acquired a ground floor apartment in Hartford in July 1998. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Similar residencies in Hartford with an extended lease were valued around £290,000. The average amount of ground rent was £45 collected every twelve months. The lease lapsed in 2098. Taking into account 73 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.