Hurstpierpoint leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Hurstpierpoint will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some circumstances you may not qualify. There are prescribed timetables and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Hurstpierpoint with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Hurstpierpoint can be a difficult process. We recommend you procure guidance 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 in-depth market knowledge procuring Hurstpierpoint lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful negotiations with the freeholder of her two bedroom apartment in Hurstpierpoint, Grace commenced the lease extension process just as the lease was coming close to the all-important 80-year threshold. The legal work was concluded in October 2014. The freeholder’s costs were kept to an absolute minimum.
Dr A Rivera owned a purpose-built apartment in Hurstpierpoint in August 1999. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Comparable residencies in Hurstpierpoint with a long lease were valued around £290,000. The mid-range ground rent payable was £45 billed yearly. The lease came to a finish in 2098. Having 73 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
Last month we were approach by Mr and Mrs. K Miller , who completed a first floor flat in Hurstpierpoint in February 2006. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Hurstpierpoint with an extended lease were worth £240,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease ended in 2087. Taking into account 62 years outstanding we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including expenses.