As the the remaining lease term of a Hawkhurst residential lease diminished so does its value and therefore the value of your property. If the residual term has, over 125 years to run then this decrease may be negligible however there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Hawkhurst will meet the qualifying criteria; nevertheless a lawyer will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Hawkhurst,the lease extension lawyers that we work with will always be willing 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.
Trailing unsuccessful discussions with the landlord of her purpose-built apartment in Hawkhurst, Isobel commenced the lease extension process as the eighty year deadline was fast approaching. The transaction was concluded in June 2011. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were called by Mr and Mrs. K Edwards who, having bought a purpose-built flat in Hawkhurst in June 2008. We are asked if we could approximate the price could be for a 90 year lease extension. Identical flats in Hawkhurst with a long lease were worth £191,000. The mid-range ground rent payable was £65 collected quarterly. The lease ran out in 2084. Taking into account 58 years outstanding we approximated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 plus fees.
Last Spring we were e-mailed by Ms U Adams , who was assigned a lease of a first floor apartment in Hawkhurst in November 1995. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar homes in Hawkhurst with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected per annum. The lease concluded in 2095. Given that there were 69 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.