Unfortunately that a Hedon residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Hedon property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be payable. Most leasehold owners in Hedon will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold properties in Hedon with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hedon can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 Hedon 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 discussions with the freeholder of her one bedroom flat in Hedon, Naomi commenced the lease extension process as the 80 year deadline was fast approaching. The lease extension was finalised in January 2011. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. M Turner purchased a ground floor apartment in Hedon in April 2003. The dilemma was if we could approximate the price would likely be to prolong the lease by ninety years. Comparable homes in Hedon with a long lease were in the region of £225,800. The average ground rent payable was £60 invoiced monthly. The lease ran out on 10 August 2085. Considering the 60 years remaining we calculated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 plus costs.
In 2014 we were contacted by Mr and Mrs. D Miller who, having acquired a purpose-built flat in Hedon in June 1995. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparative residencies in Hedon with 100 year plus lease were in the region of £210,000. The average amount of ground rent was £50 invoiced monthly. The lease concluded in 2105. Having 80 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.