Hurst leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Hurst enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Hurst you must investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as 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; |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Hurst,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 valuers.
In 2014 Daniel, came critically near to the 80-year mark with the lease on his leasehold apartment in Hurst. In buying his property 19 years ago, the unexpired term was of minimal significance. Luckily, he noticed he would imminently be paying way over the odds for a lease extension. Daniel extended the lease at the eleventh hour last March. Daniel and the landlord who owned the flat above ultimately settled on the final figure of £6,000 . If he failed to meet the deadline, the premium would have increased by at least £1,025.
Mr and Mrs. K Stewart purchased a one bedroom apartment in Hurst in March 2009. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Hurst with an extended lease were valued about £191,400. The average ground rent payable was £55 billed monthly. The lease terminated on 12 November 2079. Taking into account 54 years left we approximated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 not including expenses.
Mr and Mrs. E Evans took over the lease of a studio flat in Hurst in February 2010. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical premises in Hurst with 100 year plus lease were valued around £295,000. The average amount of ground rent was £45 invoiced every twelve months. The lease came to a finish in 2099. Given that there were 74 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.