Hertford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Hertford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Hertford you must check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Hertford with in excess of 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Virgin |
The lawyers that we work with handle 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.
Last October Hugo, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Hertford. In buying his home two decades ago, the length of the lease was of no interest. Thankfully, it dawned on him that he would imminently be paying way over the odds for a lease extension. Hugo arranged for a lease extension just under the wire in January. Hugo and the landlord subsequently settled on the final figure of £6,000 . If the lease had dipped to less than eighty years, the premium would have gone up by a minimum £950.
Ms F Brown acquired a purpose-built flat in Hertford in January 2002. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical homes in Hertford with a long lease were in the region of £250,400. The mid-range ground rent payable was £65 collected monthly. The lease came to a finish in 2090. Having 64 years remaining we calculated the premium to the landlord to extend the lease to be between £19,000 and £22,000 plus professional charges.
Last Winter we were phoned by Mr H Jones , who owned a first floor apartment in Hertford in June 2001. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable properties in Hertford with 100 year plus lease were worth £189,000. The average amount of ground rent was £55 invoiced per annum. The lease lapsed in 2079. Considering the 53 years remaining we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus fees.