For those whose Hazlemere flat is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
It is generally accepted that a property with in excess of 100 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 premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Yorkshire 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. |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
In recent months Joseph, came dangerously close to the 80-year threshold with the lease on his leasehold flat in Hazlemere. Having bought his flat two decades ago, the unexpired term was of little significance. by good luck, he realised he would soon be paying an inflated amount for a lease extension. Joseph extended the lease just ahead of time last July. Joseph and the landlord ultimately agreed on the final figure of £5,000 . If he failed to meet the deadline, the price would have escalated by at least £1,025.
In 2014 we were phoned by Mr and Mrs. Y Howard who, having took over the lease of a garden apartment in Hazlemere in May 2002. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Similar flats in Hazlemere with an extended lease were worth £189,000. The mid-range ground rent payable was £55 billed annually. The lease elapsed in 2078. Considering the 53 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including professional charges.
In 2014 we were contacted by Dr Ali Ricardo who, having owned a garden apartment in Hazlemere in January 1998. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Similar homes in Hazlemere with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected monthly. The lease finished on 20 May 2098. Having 73 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.