Chances are that where you own a flat in Hawkhurst you actually own a long leasehold interest over your property
Leasehold premises in Hawkhurst with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify 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; |
| Halifax | Minimum 70 years from the date 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:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Hawkhurst,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hawkhurst valuers.
Caleb owned a studio flat in Hawkhurst on the market with a lease of a little over fifty eight years remaining. Caleb on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Mr and Mrs. K Mason moved into a basement flat in Hawkhurst in November 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Hawkhurst with 100 year plus lease were worth £275,000. The average ground rent payable was £55 collected per annum. The lease came to a finish on 25 July 2102. Having 76 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.
Last April we were e-mailed by Dr R Ali , who owned a one bedroom flat in Hawkhurst in November 2009. We are asked if we could estimate the price could be to extend the lease by 90 years. Similar premises in Hawkhurst with a long lease were valued about £176,200. The mid-range ground rent payable was £65 invoiced annually. The lease lapsed in 2082. Given that there were 56 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 plus costs.