The re-sale value of a leasehold property in Hartford depends on how long the lease has remaining. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that all matters can be finalised well before the 80 year cut off point. Current legislation enables Hartford qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Hartford with in excess of 100 years unexpired on the lease are sometimes referred to as ‘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 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Hartford valuers.
Two years ago Alexander, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Hartford. In buying his flat two decades ago, the unexpired term was of little relevance. Thankfully, he realised he needed to take action soon on Extending the lease. Alexander extended the lease just in the nick of time in March. Alexander and the freeholder eventually agreed on the final figure of £5,500 . If he not met the deadline, the amount would have escalated by at least £850.
Mr N Bell acquired a garden apartment in Hartford in September 2009. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical homes in Hartford with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ended in 2081. Considering the 55 years as a residual term we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus professional charges.
Last year we were approach by Ms Melissa Walker , who acquired a basement apartment in Hartford in November 2011. The question was if we could estimate the price could be to prolong the lease by a further 90 years. Comparable residencies in Hartford with a long lease were worth £295,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease came to a finish on 3 June 2101. Considering the 75 years unexpired we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.