Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Hersham. Clearly, the period of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the property has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Hersham have the right to extend the lease for a further 90 years under legislation. You should give careful attention before putting off your Hersham lease extension. Holding off that expense now likely increases the price you will eventually incur to extend your lease
Leasehold residencies in Hersham with over 100 years left 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 to be gained by buying the freehold 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Hersham,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hersham valuers.
After unsuccessful correspondence with the landlord of her first floor flat in Hersham, Sophie commenced the lease extension process just as her lease was coming close to the all-important 80-year mark. The legal work completed in June 2010. The freeholder’s charges were negotiated to under 550 GBP.
Last year we were contacted by Dr Rebecca Rivera , who was assigned a lease of a purpose-built flat in Hersham in September 1997. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Identical premises in Hersham with a long lease were worth £200,800. The average amount of ground rent was £65 invoiced every twelve months. The lease elapsed on 18 March 2085. Having 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Hersham property is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case affected 1 flat.