Hurstpierpoint leases on residential properties are gradually losing 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. Most owners of residential leasehold property in Hurstpierpoint enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Hurstpierpoint you must check if your lease has between 70 and ninety years left. There are good reasons why a Hurstpierpoint flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is put in place without delay
Leasehold premises in Hurstpierpoint with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Hurstpierpoint leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Jayden, came perilously close to the eighty-year threshold with the lease on his first floor apartment in Hurstpierpoint. Having purchased his property two decades ago, the length of the lease was of minimal interest. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Jayden was able to extend his lease just in the nick of time in May. Jayden and the freeholder via the management company subsequently agreed on sum of £6,000 . If the lease had fallen below 80 years, the amount would have gone up by a minimum £950.
Last Christmas we were approach by Mr and Mrs. L Jones , who completed a one bedroom apartment in Hurstpierpoint in February 1999. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical premises in Hurstpierpoint with a long lease were in the region of £210,000. The average ground rent payable was £50 invoiced yearly. The lease elapsed in 2105. Given that there were 80 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.
Last Spring we were contacted by Mr K Mason , who bought a first floor flat in Hurstpierpoint in November 2011. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable homes in Hurstpierpoint with an extended lease were valued around £275,000. The average ground rent payable was £45 invoiced quarterly. The lease elapsed in 2094. Given that there were 69 years outstanding we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.