As the length of the unexpired term of a Hertford domestic lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of 100 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Hertford will meet the qualifying criteria; that being said a conveyancer should be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Hertford 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 conveyancer we work with provide it.
Dexter was the the leasehold proprietor of a 2 bedroom flat in Hertford on the market with a lease of fraction over 61 years outstanding. Dexter on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Dexter to exercise his statutory right. Dexter obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2011 we were e-mailed by Mr and Mrs. L Miller who, having moved into a ground floor flat in Hertford in April 1999. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Similar flats in Hertford with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 collected quarterly. The lease ended in 2100. Considering the 74 years remaining we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
In 2009 we were contacted by Mrs B Lewis who, having took over the lease of a studio flat in Hertford in April 2004. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar properties in Hertford with 100 year plus lease were valued about £243,000. The average ground rent payable was £65 invoiced annually. The lease elapsed on 2 April 2089. Considering the 63 years remaining we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 not including professional charges.