It’s a harsh truth that a Hurst Green residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Hurst Green property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. The majority of flat owners in Hurst Green will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Leeds Building Society | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Lease extensions in Hurst Green can be a difficult process. We recommend you procure guidance from a conveyancer 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 a wealth of experience procuring Hurst Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Ethan, came seriously close to the eighty-year mark with the lease on his basement flat in Hurst Green. In buying his property twenty years previously, the length of the lease was of no interest. Luckily, it dawned on him that he needed to take action soon on a lease extension. Ethan was able to extend his lease just ahead of time last August. Ethan and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If the lease had fallen to less than eighty years, the premium would have gone up by at least £1,100.
Last April we were contacted by Mrs Francesca James , who acquired a basement flat in Hurst Green in May 1999. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Comparative residencies in Hurst Green with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 collected per annum. The lease expired on 9 October 2105. Considering the 79 years remaining we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.
In 2010 we were approached by Mr and Mrs. S Thompson who, having owned a ground floor apartment in Hurst Green in November 1998. The dilemma was if we could approximate the price could be to prolong the lease by 90 years. Comparative flats in Hurst Green with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £65 collected quarterly. The lease elapsed on 1 March 2094. Having 68 years left we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.