The only way is down when it comes to Hermitage lease terms. Hermitage flats that have a residual term less than than 80 years will reduce in value even faster, and the cost to extend your lease will go up.
Leasehold residencies in Hermitage with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Hermitage can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Hermitage lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy negotiations with the freeholder of her ground floor flat in Hermitage, Jade initiated the lease extension process as the 80 year threshold was swiftly advancing. The legal work was finalised in June 2010. The landlord’s costs were kept to an absolute minimum.
Last Autumn we were called by Dr Owen Parker , who purchased a studio apartment in Hermitage in March 2007. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable homes in Hermitage with an extended lease were in the region of £260,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease terminated in 2091. Having 66 years remaining we estimated the premium to the landlord for the lease extension to be within £16,200 and £18,600 not including costs.
Mr and Mrs. Y Walker purchased a ground floor apartment in Hermitage in July 2009. The question was if we could estimate the price would be for a 90 year lease extension. Similar homes in Hermitage with 100 year plus lease were valued about £198,800. The average ground rent payable was £55 invoiced monthly. The lease came to a finish in 2080. Considering the 55 years unexpired we calculated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus legals.