Hatfield leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Hatfield tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Hatfield you must check if your lease has between seventy and 90 years left. There are good reasons why a Hatfield leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is effected without delay
Leasehold residencies in Hatfield with in excess of one hundred years left 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 upside in buying the reversionary interest 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Hatfield can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Hatfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Aiden, started to get close to the 80-year mark with the lease on his first floor flat in Hatfield. Having bought his flat two decades ago, the lease term was of little importance. Thankfully, he became aware that he would imminently be paying an inflated amount for Extending the lease. Aiden was able to extend his lease at the eleventh hour last June. Aiden and the landlord ultimately settled on a premium of £6,000 . If he not met the deadline, the sum would have become more exhorbitant by a minimum £1,125.
In 2014 we were called by Dr Jack Díaz who, having owned a purpose-built apartment in Hatfield in June 2010. The dilemma was if we could estimate the premium could be to extend the lease by 90 years. Identical flats in Hatfield with 100 year plus lease were worth £168,800. The average ground rent payable was £60 collected quarterly. The lease terminated on 24 March 2080. Considering the 55 years outstanding we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including legals.
Dr N Rogers purchased a one bedroom flat in Hatfield in January 2000. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Identical homes in Hatfield with an extended lease were valued about £232,800. The average amount of ground rent was £45 collected yearly. The lease lapsed in 2090. Considering the 65 years remaining we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.