The market value of Hawkhurst leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is less than eighty years
Leasehold premises in Hawkhurst with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hawkhurst valuers.
Leon was the the leasehold proprietor of a conversion flat in Hawkhurst being marketed with a lease of a few days over fifty eight years outstanding. Leon informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Leon to exercise his statutory right. Leon procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Summer we were phoned by Mr Teddy Harris , who took over the lease of a one bedroom apartment in Hawkhurst in November 2004. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Similar premises in Hawkhurst with an extended lease were valued around £242,600. The average ground rent payable was £45 billed every twelve months. The lease ended on 4 September 2092. Taking into account 67 years left we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 plus costs.
Last Winter we were contacted by Dr D Robinson , who took over the lease of a first floor apartment in Hawkhurst in February 2012. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Identical properties in Hawkhurst with a long lease were worth £280,000. The average amount of ground rent was £55 collected quarterly. The lease expired on 19 November 2103. Given that there were 78 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of expenses.