With a long leasehold premises in Hurst Green, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. 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 a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are fewer than eighty years remaining. Anyone in Hurst Green with a lease drawing near to 81 years remaining should seriously think of extending it sooner as opposed to later. Once a lease has below eighty years remaining, under the relevant legislation the freeholder can calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Hurst Green with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 landlord in Hurst Green,the lease extension solicitors 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.
In the wake of 6 months of lengthy negotiations with the freeholder of her purpose-built apartment in Hurst Green, Ellie commenced the lease extension process just as the lease was nearing the all-important 80-year deadline. The transaction completed in February 2013. The landlord’s fees were restricted to less than 500 pounds.
Last Christmas we were approach by Dr J Hill , who bought a one bedroom flat in Hurst Green in May 2011. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Comparable residencies in Hurst Green with an extended lease were worth £205,000. The mid-range ground rent payable was £50 billed per annum. The lease concluded on 26 April 2104. Having 78 years unexpired we estimated the compensation to the landlord to extend the lease to be between £7,600 and £8,800 not including costs.
Last Winter we were approach by Mr and Mrs. A Gray , who moved into a purpose-built apartment in Hurst Green in August 2009. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical premises in Hurst Green with 100 year plus lease were worth £267,600. The mid-range amount of ground rent was £65 billed annually. The lease ran out on 27 October 2093. Having 67 years as a residual term we approximated the premium to the landlord to extend the lease to be between £14,300 and £16,400 plus fees.