The market value of Hatfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the remaining term is below than eighty years
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Irrespective of whether you are a tenant or a landlord in Hatfield,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hatfield valuers.
Two years ago Jonathan, started to get close to the eighty-year threshold with the lease on his basement flat in Hatfield. In buying his property 18 years previously, the length of the lease was of no relevance. Fortunately, he realised he would imminently be paying way over the odds for a lease extension. Jonathan was able to extend his lease at the eleventh hour last July. Jonathan and the landlord in the end settled on the final figure of £6,000 . If the lease had dipped to less than eighty years, the figure would have gone up by at least £850.
In 2009 we were approached by Mr and Mrs. G Dupont who, having owned a newly refurbished flat in Hatfield in July 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Hatfield with 100 year plus lease were worth £235,200. The mid-range ground rent payable was £45 collected monthly. The lease lapsed in 2092. Having 66 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.
In 2013 we were e-mailed by Mr and Mrs. B Murphy who, having owned a first floor flat in Hatfield in May 1995. The question was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparative flats in Hatfield with 100 year plus lease were worth £280,000. The average ground rent payable was £55 invoiced monthly. The lease came to a finish in 2103. Taking into account 77 years unexpired we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.