With a long leasehold premises in Hartford, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Residents in Hartford with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has less than eighty years remaining, under the relevant statute the freeholder is entitled to calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Hartford,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hartford valuers.
In 2014 Cameron, came seriously close to the 80-year threshold with the lease on his leasehold flat in Hartford. In buying his property two decades ago, the lease term was of little significance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Cameron arranged for a lease extension at the eleventh hour in June. Cameron and the landlord subsequently settled on the final figure of £5,000 . If the lease had slipped below 80 years, the premium would have increased by a minimum £1,075.
Last Christmas we were approach by Mrs Rachel Clark , who moved into a one bedroom flat in Hartford in May 2000. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Hartford with an extended lease were worth £216,000. The mid-range ground rent payable was £60 billed annually. The lease lapsed in 2082. Considering the 58 years remaining we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of costs.
In 2012 we were contacted by Ms Jasmine Jones who, having was assigned a lease of a garden apartment in Hartford in May 2007. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Identical properties in Hartford with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 billed yearly. The lease lapsed in 2102. Given that there were 78 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.