Hemel Hempstead leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Hemel Hempstead enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Hemel Hempstead you should check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Hemel Hempstead flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Hemel Hempstead with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
The conveyancers that we work with procure Hemel Hempstead 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.
Subsequent to unsuccessful negotiations with the freeholder of her studio apartment in Hemel Hempstead, Erin initiated the lease extension process just as the lease was nearing the all-important 80-year threshold. The lease extension completed in September 2008. The landlord’s charges were negotiated to less than 700 GBP.
Last Spring we were approach by Ms J Carter , who took over the lease of a first floor flat in Hemel Hempstead in November 2008. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative flats in Hemel Hempstead with a long lease were valued about £246,800. The average ground rent payable was £60 billed annually. The lease ended on 5 May 2075. Considering the 50 years remaining we approximated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 plus costs.
Last Summer we were called by Dr Ibrahim Rose , who moved into a studio flat in Hemel Hempstead in February 1997. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable premises in Hemel Hempstead with 100 year plus lease were in the region of £208,200. The average ground rent payable was £65 invoiced per annum. The lease finished on 14 January 2086. Having 61 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 not including expenses.