When it comes to domestic leasehold premises in Hertford, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are less than 80 years remaining. Leasehold owners in Hertford with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When the lease term has below 80 years outstanding, under the current legislation the freeholder can calculate and charge a larger amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties in Hertford with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| TSB | |
| The Mortgage Works |
The conveyancing solicitors 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 conveyancing solicitor we work with provide it.
Harvey was the the leasehold owner of a conversion apartment in Hertford on the market with a lease of fraction over 72 years remaining. Harvey informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Harvey to exercise his statutory right. Harvey obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
In 2014 we were e-mailed by Mr and Mrs. A Torres who, having purchased a recently refurbished apartment in Hertford in July 2007. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Identical premises in Hertford with an extended lease were valued around £181,600. The mid-range amount of ground rent was £55 collected annually. The lease lapsed on 24 October 2078. Having 52 years remaining we approximated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus professional charges.
In 2011 we were approached by Mr and Mrs. T Girard who, having completed a ground floor flat in Hertford in June 2003. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable flats in Hertford with an extended lease were in the region of £290,000. The average ground rent payable was £45 billed quarterly. The lease terminated on 6 July 2098. Having 72 years left we approximated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of costs.