The market value of a leasehold property in Hemel Hempstead is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that a lease extension can be finalised ahead of the 80 year mark. Leasehold Reform legislation enables Hemel Hempstead qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Hemel Hempstead with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Hemel Hempstead can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Hemel Hempstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joshua was the the leasehold proprietor of a high value flat in Hemel Hempstead being sold with a lease of fraction over sixty years outstanding. Joshua informally approached his landlord being a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Joshua to exercise his statutory right. Joshua procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2011 we were phoned by Mr and Mrs. T Sharif who, having was assigned a lease of a newly refurbished apartment in Hemel Hempstead in November 2005. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable residencies in Hemel Hempstead with 100 year plus lease were in the region of £210,600. The mid-range ground rent payable was £45 collected yearly. The lease ran out in 2088. Taking into account 62 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus professional charges.
Dr E Alexander took over the lease of a ground floor flat in Hemel Hempstead in March 2010. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical properties in Hemel Hempstead with a long lease were valued around £265,000. The average ground rent payable was £50 collected per annum. The lease ended on 9 April 2099. Considering the 73 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.