The re-sale value of a leasehold property in Hatfield is impacted by how long the lease has left to run. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. Ideally one should start the lease extension process when the lease still has 82 years to run so that all matters can be concluded well before the eighty year threshold. Leasehold Reform legislation entitles Hatfield qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Hatfield with more than 100 years left 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 home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Hatfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Sam, came precariously near to the eighty-year mark with the lease on his leasehold flat in Hatfield. Having bought his flat two decades ago, the unexpired term was of little relevance. Thankfully, he noticed he needed to take action soon on a lease extension. Sam extended the lease just ahead of time in September. Sam and the freeholder subsequently settled on the final figure of £5,000 . If the lease had fallen below eighty years, the sum would have become more exhorbitant by at least £950.
Last March we were called by Dr Alisha Lee , who completed a recently refurbished apartment in Hatfield in October 2002. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical homes in Hatfield with 100 year plus lease were worth £260,000. The average amount of ground rent was £50 invoiced yearly. The lease elapsed on 5 January 2097. Having 71 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Last month we were approach by Dr Harrison Murphy , who completed a purpose-built flat in Hatfield in February 2007. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparable residencies in Hatfield with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced quarterly. The lease terminated on 3 August 2077. Considering the 51 years left we estimated the premium to the landlord for the lease extension to be between £43,700 and £50,600 plus costs.