Unfortunately that a Hurst residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Hurst property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term slips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Hurst will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom 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 property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hurst can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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.
Joseph was the the leasehold proprietor of a conversion flat in Hurst on the market with a lease of just over sixty years left. Joseph on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Mr and Mrs. F Roux owned a one bedroom apartment in Hurst in January 1997. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative residencies in Hurst with a long lease were valued about £260,200. The mid-range amount of ground rent was £65 collected yearly. The lease elapsed in 2091. Taking into account 66 years as a residual term we approximated the premium to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of expenses.
Last Summer we were called by Mr and Mrs. T Davis , who moved into a garden apartment in Hurst in September 2008. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar residencies in Hurst with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 billed annually. The lease came to a finish on 17 January 2080. Given that there were 55 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of expenses.