Chances are that where you own a flat in Hemel Hempstead you actually own a long leasehold interest over your property
Leasehold premises in Hemel Hempstead with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Hemel Hempstead leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Cameron, started to get close to the 80-year threshold with the lease on his ground floor apartment in Hemel Hempstead. In buying his property 18 years previously, the length of the lease was of no relevance. Luckily, he noticed he would soon be paying way over the odds for Extending the lease. Cameron was able to extend his lease at the eleventh hour last July. Cameron and the landlord in the end agreed on an amount of £5,000 . If the lease had descended lower than eighty years, the amount would have escalated by at least £850.
Last Summer we were called by Dr Jordan James , who purchased a newly refurbished apartment in Hemel Hempstead in October 2001. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar homes in Hemel Hempstead with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 billed monthly. The lease expired in 2105. Having 79 years left we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.
Last August we were called by Dr H Jackson , who bought a one bedroom flat in Hemel Hempstead in September 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar flats in Hemel Hempstead with 100 year plus lease were valued around £193,400. The average ground rent payable was £65 billed yearly. The lease came to a finish in 2085. Given that there were 59 years remaining we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of expenses.