Hungerford leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the current lease falls lower than eighty years - otherwise a higher amount will be payable. Leasehold owners in Hungerford will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Hungerford with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Hungerford can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in this area.
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 procuring Hungerford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the landlord of her ground floor flat in Hungerford, Shannon commenced the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The lease extension completed in July 2005. The landlord’s costs were negotiated to below 450 GBP.
Mr and Mrs. Y González acquired a recently refurbished apartment in Hungerford in May 2002. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative flats in Hungerford with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ended on 4 May 2094. Considering the 69 years remaining we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.
In 2013 we were approached by Mr and Mrs. W Bernard who, having bought a first floor flat in Hungerford in June 2006. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Similar flats in Hungerford with 100 year plus lease were worth £216,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ran out in 2083. Considering the 58 years left we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of fees.