Hurstpierpoint leases on residential properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Hurstpierpoint will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some cases you may not be entitled. There are prescribed timetables and steps to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Hurstpierpoint,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hurstpierpoint valuers.
Jackson owned a conversion apartment in Hurstpierpoint on the market with a lease of fraction over 61 years outstanding. Jackson on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be due on a lease extension were Jackson to invoke his statutory right. Jackson obtained expert advice and secured an acceptable resolution without going to tribunal and sell the flat.
In 2011 we were phoned by Mr and Mrs. B Baker who, having took over the lease of a garden flat in Hurstpierpoint in June 2010. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Identical flats in Hurstpierpoint with an extended lease were worth £233,200. The average amount of ground rent was £60 billed every twelve months. The lease lapsed on 25 November 2086. Taking into account 61 years outstanding we calculated the premium to the landlord to extend the lease to be between £22,800 and £26,400 plus expenses.
In 2010 we were phoned by Mr H Ali who, having was assigned a lease of a one bedroom apartment in Hurstpierpoint in October 2008. We are asked if we could estimate the price could be to extend the lease by 90 years. Identical homes in Hurstpierpoint with a long lease were worth £166,800. The average ground rent payable was £55 invoiced per annum. The lease finished in 2075. Having 50 years as a residual term we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including costs.