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 90 years in accordance with legislation. Please think carefully before delaying your Hurst Green lease extension. Postponing the costs today simply escalates the amount you will eventually be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 lawyer we work with provide it.
Ali owned a conversion apartment in Hurst Green on the market with a lease of just over fifty eight years remaining. Ali on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Ali to exercise his statutory right. Ali procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Mrs R Adams purchased a recently refurbished flat in Hurst Green in September 2007. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar properties in Hurst Green with 100 year plus lease were in the region of £171,800. The average amount of ground rent was £55 billed every twelve months. The lease came to a finish in 2075. Having 50 years remaining we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus fees.
Mr and Mrs. S Young owned a purpose-built flat in Hurst Green in July 2008. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparable properties in Hurst Green with a long lease were in the region of £280,000. The mid-range ground rent payable was £45 collected yearly. The lease expired on 11 January 2095. Considering the 70 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.