When it comes to domestic leasehold premises in Hurst Green, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider 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 notably when there are less than eighty years remaining. Residents in Hurst Green with a lease approaching 81 years left should seriously consider extending it without delay. Once the lease term has under 80 years remaining, under the relevant Act the freeholder can calculate and charge a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Hurst Green can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 dealing with 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.
In 2014 Tyler, came seriously near to the eighty-year threshold with the lease on his ground floor apartment in Hurst Green. In buying his property two decades ago, the unexpired term was of little significance. As luck would have it, he became aware that he would imminently be paying way over the odds for a lease extension. Tyler was able to extend his lease just under the wire in March. Tyler and the landlord who owned the flat above in the end settled on a premium of £6,000 . If he not met the deadline, the price would have increased by at least £1,050.
Mr and Mrs. E Davis bought a garden flat in Hurst Green in July 1998. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Identical residencies in Hurst Green with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced per annum. The lease lapsed on 8 October 2096. Given that there were 72 years unexpired we approximated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 not including legals.
Last Christmas we were contacted by Mr Michael Kelly , who acquired a first floor apartment in Hurst Green in April 2006. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative premises in Hurst Green with an extended lease were valued around £233,200. The average ground rent payable was £60 billed per annum. The lease ended on 22 July 2085. Taking into account 61 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 not including fees.