Hartlebury leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Hartlebury residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hartlebury you would be well advised to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Hartlebury with over 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Engaging our service will provide you enhanced control over the value of your Hartlebury leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the freeholder of her ground floor flat in Hartlebury, Madeleine commenced the lease extension process just as the lease was nearing the all-important 80-year deadline. The legal work was finalised in May 2012. The freeholder’s fees were kept to an absolute minimum.
Dr O Hall owned a newly refurbished flat in Hartlebury in June 2003. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparable residencies in Hartlebury with 100 year plus lease were worth £191,400. The average amount of ground rent was £55 billed annually. The lease concluded on 28 May 2079. Having 54 years outstanding we calculated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 not including legals.
In 2009 we were called by Ms Isobel Alexander who, having moved into a garden apartment in Hartlebury in April 2005. We are asked if we could estimate the premium would be to extend the lease by ninety years. Identical properties in Hartlebury with an extended lease were in the region of £295,000. The average ground rent payable was £45 collected annually. The lease elapsed in 2099. Taking into account 74 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.