As the length of the unexpired term of a Hatton Park residential lease lessens so does its value and therefore the value of your property. If the lease has, over 99 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner as opposed to later. The majority of flat owners in Hatton Park will meet the qualifying criteria; that being said a conveyancing solicitor should be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Hatton Park with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 handle Hatton Park 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 conveyancer we work with provide it.
In recent months Henry, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Hatton Park. Having bought his flat twenty years ago, the unexpired term was of little importance. Fortunately, he became aware that he would imminently be paying way over the odds for a lease extension. Henry arranged for a lease extension just in the nick of time last March. Henry and the landlord eventually agreed on sum of £5,500 . If he not met the deadline, the sum would have escalated by at least £975.
Last Spring we were called by Mrs K Turner , who moved into a one bedroom flat in Hatton Park in March 2001. The question was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparative flats in Hatton Park with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 collected annually. The lease lapsed on 27 January 2097. Given that there were 71 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.
In 2013 we were e-mailed by Mr and Mrs. U Campbell who, having bought a purpose-built apartment in Hatton Park in September 2003. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable homes in Hatton Park with a long lease were worth £254,200. The mid-range amount of ground rent was £60 billed monthly. The lease expired in 2077. Given that there were 51 years left we calculated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 not including legals.