Hurst leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes 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 would be well advised to check if your lease has between seventy and ninety years left. There are compelling reasons why a Hurst leaseholder with a lease having around eighty years left should take steps to make sure that a lease extension is effected without delay
Leasehold properties in Hurst with over one hundred years left on the lease are sometimes 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 upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Lease extensions in Hurst can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted correspondence with the landlord of her garden flat in Hurst, Jennifer started the lease extension process as the 80 year threshold was quickly approaching. The transaction completed in October 2005. The freeholder’s fees were kept to an absolute minimum.
Last Summer we were phoned by Mr and Mrs. F François , who completed a purpose-built apartment in Hurst in January 1996. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Comparable residencies in Hurst with a long lease were worth £181,600. The mid-range amount of ground rent was £55 billed quarterly. The lease elapsed in 2078. Considering the 52 years as a residual term we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of expenses.
Dr Riley Rivera bought a one bedroom apartment in Hurst in February 1999. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative residencies in Hurst with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £45 collected monthly. The lease terminated in 2098. Taking into account 72 years remaining we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.