The only way is down when it comes to Hemel Hempstead lease terms. Hemel Hempstead properties that have a residual term less than than eighty years will drop in market price at a rapid rate, and the cost to extend your lease will go up.
Leasehold premises in Hemel Hempstead with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 conveyancing solicitors that we work with undertake 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 conveyancing solicitor we work with provide it.
Benjamin was the the leasehold owner of a conversion flat in Hemel Hempstead being sold with a lease of a few days over fifty eight years unexpired. Benjamin informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin obtained expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
In 2009 we were approached by Mr and Mrs. A Fournier who, having completed a studio apartment in Hemel Hempstead in October 1999. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in Hemel Hempstead with a long lease were worth £242,600. The mid-range amount of ground rent was £45 billed per annum. The lease terminated in 2093. Given that there were 67 years remaining we calculated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of legals.
In 2013 we were called by Dr Rachel Khan who, having owned a one bedroom flat in Hemel Hempstead in February 2004. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Similar properties in Hemel Hempstead with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease expired on 16 May 2104. Taking into account 78 years left we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.