On the balance of probabilities where you own a flat in Hartford you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Hartford can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Hartford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lucas owned a studio apartment in Hartford on the market with a lease of fraction over 72 years left. Lucas informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to 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 Lucas to exercise his statutory right. Lucas procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last month we were contacted by Mr and Mrs. F Dupont , who owned a ground floor flat in Hartford in July 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparable premises in Hartford with a long lease were worth £225,800. The average ground rent payable was £60 billed monthly. The lease elapsed on 21 August 2086. Having 60 years remaining we calculated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of expenses.
Last Summer we were approach by Ms Isabella Bell , who took over the lease of a purpose-built flat in Hartford in January 2004. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable premises in Hartford with an extended lease were valued about £210,000. The average ground rent payable was £50 collected monthly. The lease lapsed in 2106. Given that there were 80 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.