For anyone whose Hartford property is held on a long lease, our message is clear – if nothing is done, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold properties in Hartford with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Hartford,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hartford valuers.
Trailing lengthy discussions with the landlord of her first floor apartment in Hartford, Melissa started the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The transaction was concluded in January 2007. The landlord’s fees were kept to an absolute minimum.
Ms Holly Carter was assigned a lease of a ground floor flat in Hartford in June 2005. The question was if we could estimate the premium could be for a ninety year extension to my lease. Identical flats in Hartford with a long lease were valued about £280,000. The average ground rent payable was £45 billed every twelve months. The lease expired in 2094. Taking into account 70 years outstanding we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.
Mrs B Flores bought a one bedroom apartment in Hartford in February 2005. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable properties in Hartford with 100 year plus lease were valued about £218,400. The average amount of ground rent was £60 billed yearly. The lease lapsed in 2083. Considering the 59 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of legals.