With a domestic leasehold premises in Hazlemere, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years left. Leasehold owners in Hazlemere with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once a lease has fewer than eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Hazlemere,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hazlemere valuers.
Off the back of protracted correspondence with the landlord of her purpose-built flat in Hazlemere, Isobel initiated the lease extension process just as the lease was coming close to the critical 80-year mark. The lease extension completed in June 2014. The freeholder’s costs were kept to an absolute minimum.
Ms L Martinez moved into a first floor flat in Hazlemere in February 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Hazlemere with an extended lease were valued about £233,200. The average ground rent payable was £60 collected monthly. The lease expired on 3 September 2086. Taking into account 61 years outstanding we approximated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of professional charges.
In 2009 we were e-mailed by Mr Joshua Martínez who, having owned a one bedroom apartment in Hazlemere in September 2009. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparative flats in Hazlemere with a long lease were worth £171,800. The average ground rent payable was £55 billed annually. The lease expired on 6 July 2075. Taking into account 50 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus professional charges.