Hartford leases on residential properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Hartford will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some cases you may not qualify. There are also strict timetables and formalities to comply with once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold properties in Hartford with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a freeholder in Hartford,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 Hartford valuers.
During the course of the last few months Thomas, started to get near to the 80-year mark with the lease on his one bedroom apartment in Hartford. In buying his home twenty years previously, the length of the lease was of little bearing. As luck would have it, he realised he needed to take steps soon on Extending the lease. Thomas arranged for a lease extension just under the wire last May. Thomas and the freeholder via the managing agents subsequently settled on the final figure of £5,000 . If he failed to meet the deadline, the figure would have become more costly by a minimum £1,025.
In 2014 we were e-mailed by Mr I Campbell who, having completed a one bedroom flat in Hartford in February 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Hartford with an extended lease were worth £174,200. The mid-range amount of ground rent was £55 collected per annum. The lease elapsed on 21 July 2077. Taking into account 51 years remaining we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
In 2013 we were contacted by Mr and Mrs. L Taylor who, having owned a first floor apartment in Hartford in March 2005. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative properties in Hartford with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease concluded on 1 July 2097. Given that there were 71 years left we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.