The market value of Hazlemere leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is below than eighty years
Leasehold premises in Hazlemere with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 lawyers 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 lawyer we work with provide it.
In 2014 Harry, started to get near to the 80-year mark with the lease on his garden flat in Hazlemere. In buying his flat 18 years ago, the length of the lease was of little importance. Luckily, he noticed he would imminently be paying an inflated amount for Extending the lease. Harry arranged for a lease extension just ahead of time in August. Harry and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If he not met the deadline, the amount would have escalated by a minimum £1,050.
Last January we were approach by Mr and Mrs. A Wright , who purchased a one bedroom flat in Hazlemere in January 1999. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Similar flats in Hazlemere with an extended lease were in the region of £200,000. The average amount of ground rent was £50 collected per annum. The lease terminated in 2103. Having 77 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
Last Spring we were contacted by Mr and Mrs. A Ward , who bought a purpose-built apartment in Hazlemere in October 2012. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Identical homes in Hazlemere with a long lease were in the region of £260,200. The mid-range amount of ground rent was £65 invoiced annually. The lease lapsed on 3 September 2092. Considering the 66 years outstanding we estimated the premium to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of expenses.