Hartford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Hartford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Hartford you would be well advised to see if your lease has between 70 and ninety years left. There are compelling reasons why a Hartford leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 in-depth market knowledge and the close ties they enjoy with Hartford valuers.
In the wake of 9 months of unsuccessful negotiations with the landlord of her first floor apartment in Hartford, Kelsey initiated the lease extension process as the eighty year mark was quickly advancing. The lease extension was finalised in February 2006. The landlord’s fees were kept to an absolute minimum.
Mrs Ellie Parker owned a newly refurbished flat in Hartford in March 1999. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative residencies in Hartford with 100 year plus lease were valued about £250,400. The average ground rent payable was £65 billed quarterly. The lease concluded on 18 November 2090. Having 64 years outstanding we calculated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 not including expenses.
Last Christmas we were called by Dr Jason François , who bought a newly refurbished flat in Hartford in September 2010. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Identical homes in Hartford with an extended lease were valued about £184,000. The average ground rent payable was £55 collected yearly. The lease expiry date was in 2079. Taking into account 53 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of costs.