Hyde Park leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Hyde Park residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hyde Park you would be well advised to check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Hyde Park flat owner with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
It is generally considered that a property with more than one hundred 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 worth the same as a freehold for many years in the future.
| 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 are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Using our service gives you better control over the value of your Hyde Park leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy correspondence with the freeholder of her purpose-built apartment in Hyde Park, Courtney initiated the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The transaction was concluded in April 2011. The landlord’s fees were kept to an absolute minimum.
In 2009 we were contacted by Ms E López who, having moved into a newly refurbished flat in Hyde Park in February 2007. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable residencies in Hyde Park with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 billed quarterly. The lease expired on 18 October 2097. Taking into account 71 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.
Mr and Mrs. K Nelson bought a studio flat in Hyde Park in February 2011. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparable flats in Hyde Park with 100 year plus lease were valued around £254,200. The mid-range ground rent payable was £60 collected quarterly. The lease elapsed on 11 July 2077. Having 51 years remaining we calculated the premium to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of fees.