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 the lease becomes more expensive. Most owners of residential leasehold property in Hartlebury enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Hartlebury you really ought to see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Hartlebury flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay
Leasehold properties in Hartlebury with more than one hundred years left 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Hartlebury,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 Hartlebury valuers.
Last Winter Arthur, started to get close to the 80-year threshold with the lease on his ground floor flat in Hartlebury. Having purchased his flat twenty years previously, the length of the lease was of minimal concern. Thankfully, he noticed he would soon be paying an escalated premium for Extending the lease. Arthur arranged for a lease extension at the eleventh hour last January. Arthur and the freeholder in the end settled on a premium of £5,500 . If the lease had descended below 80 years, the figure would have become more exhorbitant by a minimum £975.
Dr E Vincent took over the lease of a one bedroom flat in Hartlebury in May 2000. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar properties in Hartlebury with 100 year plus lease were valued about £265,200. The mid-range ground rent payable was £65 billed annually. The lease ended on 26 November 2091. Considering the 66 years outstanding we approximated the premium to the landlord to extend the lease to be within £15,200 and £17,600 not including expenses.
In 2009 we were called by Mrs P Michel who, having owned a purpose-built flat in Hartlebury in July 2003. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Hartlebury with a long lease were in the region of £198,800. The mid-range ground rent payable was £55 billed quarterly. The lease expired in 2080. Given that there were 55 years unexpired we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of legals.