When it comes to domestic leasehold property in Hartford, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Leasehold owners in Hartford with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. Once a lease has under 80 years left, under the current legislation the freeholder is entitled to calculate and demand a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Hartford,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hartford valuers.
Freddie owned a studio flat in Hartford being marketed with a lease of a little over 72 years outstanding. Freddie on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Freddie to invoke his statutory right. Freddie procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Dr F Girard completed a basement apartment in Hartford in April 1998. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Similar properties in Hartford with an extended lease were worth £208,600. The mid-range ground rent payable was £60 collected monthly. The lease elapsed in 2082. Taking into account 57 years unexpired we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including costs.
In 2014 we were phoned by Dr E Young who, having completed a garden apartment in Hartford in February 2003. The question was if we could approximate the price would likely be for a 90 year lease extension. Similar flats in Hartford with 100 year plus lease were worth £200,000. The average ground rent payable was £50 invoiced per annum. The lease expired on 9 November 2102. Taking into account 77 years unexpired we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.