On the balance of probabilities where you own a flat in Hazlemere you actually own a long leasehold interest over your property
Leasehold properties in Hazlemere 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Hazlemere 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.
Following protracted negotiations with the freeholder of her first floor apartment in Hazlemere, Rhiannon commenced the lease extension process just as her lease was approaching the crucial 80-year deadline. The legal work completed in March 2008. The freeholder’s fees were negotiated to approximately 600 pounds.
Mrs A Bernard purchased a one bedroom flat in Hazlemere in August 2006. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable residencies in Hazlemere with an extended lease were valued around £240,600. The average amount of ground rent was £60 billed every twelve months. The lease expired on 3 November 2088. Having 62 years left we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of fees.
Last February we were called by Dr K Harris , who owned a basement flat in Hazlemere in April 1997. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable properties in Hazlemere with 100 year plus lease were worth £174,200. The average amount of ground rent was £55 invoiced per annum. The lease terminated on 3 September 2077. Considering the 51 years left we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of fees.