With a residential leasehold premises in Hurst Green, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Anyone in Hurst Green with a lease nearing 81 years unexpired should seriously think of extending it without delay. When the lease term has fewer than eighty years left, under the relevant Act the freeholder can calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Hurst Green with over one hundred years remaining 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 premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 freeholder in Hurst Green,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hurst Green valuers.
Last October Noah, started to get close to the eighty-year threshold with the lease on his studio flat in Hurst Green. Having bought his property two decades ago, the unexpired term was of no relevance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Noah extended the lease just ahead of time last August. Noah and the freeholder via the management company eventually settled on the final figure of £5,500 . If the lease had fallen below eighty years, the sum would have gone up by a minimum £1,125.
In 2009 we were approached by Dr Gabriel Morgan who, having completed a one bedroom apartment in Hurst Green in April 2007. The question was if we could approximate the price would be to extend the lease by 90 years. Comparable homes in Hurst Green with an extended lease were valued around £285,000. The mid-range ground rent payable was £45 billed quarterly. The lease ended on 2 July 2096. Having 71 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.
Mrs V Scott moved into a basement apartment in Hurst Green in July 2002. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar premises in Hurst Green with 100 year plus lease were worth £230,800. The average ground rent payable was £60 invoiced yearly. The lease expired on 13 August 2085. Given that there were 60 years remaining we calculated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 not including expenses.