The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Hertford may extend the lease for an additional ninety years under Leasehold Reform legislation. Do give careful consideration before delaying your Hertford lease extension. Putting off the costs now simply increases the price you will ultimately have to pay for a lease extension.
Leasehold residencies in Hertford with more than one hundred years unexpired 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
The lawyers that we work with procure 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 lawyer we work with provide it.
Alfie owned a high value apartment in Hertford on the market with a lease of a few days over 61 years outstanding. Alfie informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Alfie to exercise his statutory right. Alfie obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2009 we were approached by Dr James Edwards who, having moved into a one bedroom flat in Hertford in August 1995. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Hertford with 100 year plus lease were worth £275,000. The average amount of ground rent was £45 collected annually. The lease concluded on 21 August 2094. Considering the 69 years left we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
Last July we were called by Ms Y Anderson , who completed a one bedroom flat in Hertford in October 2010. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparative flats in Hertford with an extended lease were worth £216,000. The average amount of ground rent was £60 billed every twelve months. The lease finished in 2083. Having 58 years remaining we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus legals.