With a long leasehold premises in Hurst Green, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are less than eighty years remaining. Leasehold owners in Hurst Green with a lease approaching 81 years left should seriously consider extending it sooner as opposed to later. Once a lease has under 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Hurst Green with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 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. |
| 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. |
Lease extensions in Hurst Green can be a difficult process. We recommend you get guidance from a conveyancer 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 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.
Two years ago Ali, came dangerously near to the eighty-year mark with the lease on his first floor flat in Hurst Green. Having purchased his home twenty years ago, the length of the lease was of no relevance. Fortunately, he became aware that he needed to take steps soon on a lease extension. Ali arranged for a lease extension just under the wire in January. Ali and the freeholder in the end settled on an amount of £6,000 . If he had missed the deadline, the premium would have increased by at least £1,050.
Mr and Mrs. D López purchased a one bedroom flat in Hurst Green in March 1995. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparable properties in Hurst Green with 100 year plus lease were valued about £233,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease termination date was on 20 August 2086. Taking into account 61 years unexpired we calculated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of professional charges.
In 2010 we were called by Ms C Petit who, having bought a garden apartment in Hurst Green in March 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Hurst Green with 100 year plus lease were valued about £171,800. The average ground rent payable was £55 billed per annum. The lease lapsed in 2075. Given that there were 50 years outstanding we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus professional charges.