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Why you should start your Hurst Green lease extension

Main reasons to commence your Hurst Green lease extension today:

A Hurst Green lease depreciates with the years remaining on the lease.

The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Hurst Green can extend the lease for an additional ninety years in accordance with statute. Do think carefully before delaying your Hurst Green lease extension. Postponing that expense today simply escalates the amount you will ultimately be required to pay to extend the lease.

An extended lease is almost the same value as a freehold

Leasehold residencies in Hurst Green with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders may decide not to finance a property on a short lease

The trend since 2008 has been for lenders to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Lender Requirement
Coventry Building Society A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Lloyds TSB Scotland Mortgage term plus 30 years subject to an overall minimum term of 70 years
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
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.

What makes us experts in Hurst Green lease extensions?

The conveyancers that we work with procure Hurst Green 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 conveyancer we work with provide it.

Hurst Green Lease Extension Case Summaries:

Jasper, Hurst Green, East Sussex

Last October Jasper, came very near to the eighty-year mark with the lease on his two bedroom flat in Hurst Green. Having purchased his flat 19 years previously, the lease term was of minimal importance. Thankfully, he noticed he would imminently be paying way over the odds for Extending the lease. Jasper arranged for a lease extension just under the wire in August. Jasper and the freeholder via the managing agents eventually settled on sum of £6,000 . If the lease had slid lower than eighty years, the figure would have gone up by a minimum £850.

Hurst Green case:

Last Christmas we were contacted by Dr D Jackson , who took over the lease of a ground floor apartment in Hurst Green in August 2010. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative premises in Hurst Green with an extended lease were valued about £280,000. The average amount of ground rent was £45 invoiced quarterly. The lease finished in 2092. Having 70 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.

Hurst Green case:

In 2013 we were phoned by Dr Y Garcia who, having bought a purpose-built apartment in Hurst Green in August 2008. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable homes in Hurst Green with 100 year plus lease were in the region of £223,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ended on 25 March 2081. Given that there were 59 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 plus professional charges.