Unfortunately that a Hartlebury residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Hartlebury property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Hartlebury will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Using our service gives you increased control over the value of your Hartlebury leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jason was the the leasehold proprietor of a high value flat in Hartlebury on the market with a lease of just over 72 years remaining. Jason informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jason to exercise his statutory right. Jason obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2011 we were approached by Mrs Erin Howard who, having bought a one bedroom flat in Hartlebury in November 2002. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Comparative residencies in Hartlebury with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease expired on 10 October 2103. Having 78 years unexpired we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.
Dr Callum Rogers bought a basement flat in Hartlebury in April 2001. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative residencies in Hartlebury with an extended lease were worth £267,600. The average amount of ground rent was £65 invoiced quarterly. The lease finished in 2092. Considering the 67 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of expenses.