Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Hereford. Inevitably, the period of lease left reduces as time goes by. This may slip by relatively unnoticed when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Hereford have the right to extend the lease for an additional ninety years under legislation. Please give due attention before delaying your Hereford lease extension. Holding off the cost now only increases the price you will ultimately have to pay to extend your lease
Leasehold premises in Hereford with in excess of 100 years left 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Hereford,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hereford valuers.
After protracted negotiations with the freeholder of her purpose-built flat in Hereford, Morgan started the lease extension process just as her lease was coming close to the critical eighty-year threshold. The transaction was finalised in May 2007. The landlord’s fees were negotiated to below 450 pounds.
Mr Joseph Campbell owned a studio flat in Hereford in April 1997. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparable residencies in Hereford with a long lease were valued about £174,200. The mid-range ground rent payable was £55 collected monthly. The lease ended on 7 February 2077. Taking into account 51 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of costs.
Last year we were contacted by Dr Danielle Roux , who purchased a basement apartment in Hereford in October 1998. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Comparative properties in Hereford with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £45 collected annually. The lease lapsed in 2097. Taking into account 71 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.