Hazlemere leases on residential properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Hazlemere will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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 also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Hazlemere,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hazlemere valuers.
Twenty four months ago Leo, came dangerously near to the eighty-year mark with the lease on his ground floor flat in Hazlemere. In buying his home twenty years previously, the length of the lease was of no bearing. Luckily, it dawned on him that he would soon be paying an inflated amount for a lease extension. Leo was able to extend his lease just in the nick of time last June. Leo and the landlord eventually agreed on an amount of £5,500 . If he failed to meet the deadline, the sum would have escalated by at least £975.
In 2014 we were e-mailed by Dr H Campbell who, having bought a studio apartment in Hazlemere in November 1997. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical residencies in Hazlemere with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £45 billed per annum. The lease ended on 13 November 2094. Taking into account 69 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.
Dr Kirsty Ali completed a ground floor flat in Hazlemere in October 2001. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Identical properties in Hazlemere with 100 year plus lease were valued about £216,000. The average amount of ground rent was £60 collected every twelve months. The lease ran out in 2083. Considering the 58 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of fees.