Hazlemere leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Hazlemere residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Hazlemere you really ought to investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Hazlemere flat owner with a lease having around 80 years unexpired should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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; |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date 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. |
The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
Twenty four months ago Kai, came perilously close to the 80-year threshold with the lease on his studio flat in Hazlemere. In buying his home two decades ago, the unexpired term was of minimal significance. Luckily, he recognised he would imminently be paying an inflated amount for Extending the lease. Kai arranged for a lease extension just in the nick of time in May. Kai and the landlord who owned the flat above ultimately settled on an amount of £6,000 . If the lease had dropped below eighty years, the amount would have gone up by at least £1,150.
Last Spring we were contacted by Mr and Mrs. G Thomas , who bought a first floor flat in Hazlemere in February 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable homes in Hazlemere with an extended lease were valued around £285,000. The mid-range ground rent payable was £45 billed annually. The lease ran out in 2097. Considering the 72 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.
Last Christmas we were phoned by Mr and Mrs. O Bennett , who took over the lease of a purpose-built apartment in Hazlemere in March 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Identical homes in Hazlemere with 100 year plus lease were worth £233,200. The mid-range amount of ground rent was £60 collected yearly. The lease ended in 2086. Considering the 61 years left we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of expenses.