Hertford leases on residential properties are gradually decreasing 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. Legislation has been in place for sometime now which entitles qualifying Hertford residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Hertford you should check if your lease has between seventy and ninety years left. There are compelling reasons why a Hertford leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is effected without delay
Leasehold premises in Hertford with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Hertford can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Hertford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Leo, came critically near to the eighty-year threshold with the lease on his ground floor apartment in Hertford. In buying his property 18 years previously, the lease term was of little relevance. Thankfully, he became aware that he would soon be paying an escalated premium for a lease extension. Leo arranged for a lease extension just ahead of time in July. Leo and the landlord who owned the flat above in the end settled on a premium of £6,000 . If he had missed the deadline, the premium would have escalated by at least £1,100.
Last year we were approach by Mrs R Edwards , who acquired a one bedroom flat in Hertford in November 2001. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Hertford with a long lease were valued around £223,400. The average amount of ground rent was £60 collected annually. The lease elapsed on 16 April 2085. Considering the 59 years outstanding we approximated the premium to the landlord for the lease extension to be between £27,600 and £31,800 not including legals.
In 2014 we were approached by Mr John Dupont who, having purchased a basement flat in Hertford in April 2007. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparative homes in Hertford with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 billed monthly. The lease elapsed on 6 March 2105. Having 79 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.