It’s an underpublicised certainty that a Hurst Green residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Hurst Green property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term slips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Hurst Green will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold properties in Hurst Green with over one hundred years left 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Retaining our service gives you increased control over the value of your Hurst Green leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Kyle, came very near to the 80-year threshold with the lease on his purpose- built flat in Hurst Green. In buying his flat 19 years previously, the unexpired term was of minimal concern. As luck would have it, he realised he needed to take steps soon on Extending the lease. Kyle arranged for a lease extension at the eleventh hour last September. Kyle and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If he had missed the deadline, the price would have gone up by at least £1,025.
In 2009 we were e-mailed by Mr and Mrs. R Murphy who, having acquired a purpose-built flat in Hurst Green in January 2000. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical residencies in Hurst Green with 100 year plus lease were worth £196,400. The average amount of ground rent was £55 invoiced annually. The lease finished in 2080. Given that there were 54 years unexpired we approximated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 plus fees.
Last Winter we were contacted by Ms T Brooks , who owned a basement apartment in Hurst Green in January 1996. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Hurst Green with an extended lease were valued around £295,000. The average amount of ground rent was £45 collected every twelve months. The lease lapsed on 9 February 2100. Given that there were 74 years unexpired we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.