For anyone whose Hartford property is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
Leasehold residencies in Hartford with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hartford can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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.
Blake owned a high value apartment in Hartford being sold with a lease of just over 59 years unexpired. Blake informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Blake to exercise his statutory right. Blake procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2013 we were e-mailed by Dr W Watson who, having moved into a purpose-built apartment in Hartford in September 2003. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Similar premises in Hartford with an extended lease were worth £191,400. The mid-range ground rent payable was £55 collected yearly. The lease elapsed on 2 November 2080. Considering the 54 years unexpired we approximated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 not including costs.
Mr and Mrs. T Davis bought a purpose-built flat in Hartford in January 2004. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Hartford with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected per annum. The lease expired on 6 June 2100. Given that there were 74 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.