The value of Hindhead leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the remaining term is below than 80 years
Leasehold residencies in Hindhead with more than 100 years left on the lease are sometimes 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 to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Hindhead,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hindhead valuers.
Off the back of lengthy negotiations with the freeholder of her purpose-built apartment in Hindhead, Daisy started the lease extension process as the 80 year threshold was fast nearing. The lease extension was finalised in June 2009. The freeholder’s charges were negotiated to approximately 550 GBP.
Dr B Garcia purchased a first floor flat in Hindhead in August 2011. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparable homes in Hindhead with a long lease were in the region of £290,000. The average ground rent payable was £60 collected yearly. The lease ended in 2106. Taking into account 80 years unexpired we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.
Last year we were contacted by Dr Felix Gray , who bought a ground floor apartment in Hindhead in January 2001. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Hindhead with a long lease were valued around £200,800. The mid-range amount of ground rent was £65 collected monthly. The lease ended in 2086. Taking into account 60 years left we approximated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 plus professional charges.