The nearer a domestic lease in Hartlebury gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Hartlebury will qualify for this right; however a lawyer should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Hartlebury with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Hartlebury leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jamie owned a studio apartment in Hartlebury on the market with a lease of a little over sixty years remaining. Jamie on an informal basis approached his landlord a well known Bristol-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 subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Jamie to invoke his statutory right. Jamie procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Mrs E Davies took over the lease of a one bedroom apartment in Hartlebury in March 1999. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Identical properties in Hartlebury with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 invoiced yearly. The lease concluded on 24 October 2078. Having 52 years left we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including legals.
Last Autumn we were called by Dr A Cook , who completed a ground floor apartment in Hartlebury in June 1995. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical residencies in Hartlebury with an extended lease were valued about £290,000. The mid-range ground rent payable was £45 collected yearly. The lease expired on 4 February 2098. Given that there were 72 years outstanding we calculated the premium to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of legals.