For anyone whose Hazlemere home is held on a long lease, our message is clear – if you ignore the situation, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Hazlemere leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the freeholder of her two bedroom apartment in Hazlemere, Ella commenced the lease extension process just as the lease was nearing the critical eighty-year mark. The lease extension was finalised in June 2005. The freeholder’s fees were kept to an absolute minimum.
Dr Y Nguyen completed a newly refurbished flat in Hazlemere in August 1998. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative premises in Hazlemere with a long lease were in the region of £191,400. The mid-range amount of ground rent was £55 billed per annum. The lease lapsed in 2080. Considering the 54 years unexpired we calculated the premium to the landlord to extend the lease to be within £34,200 and £39,600 exclusive of fees.
Mrs N Hall purchased a garden flat in Hazlemere in August 2005. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable flats in Hazlemere with a long lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced annually. The lease expired in 2100. Having 74 years unexpired we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.