Hedon leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Hedon enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Hedon you must check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Hedon flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay
Leasehold residencies in Hedon with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 Hedon can be a difficult process. We recommend you get professional help from a lawyer and surveyor 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 a wealth of experience dealing with Hedon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Reuben, started to get close to the 80-year mark with the lease on his two bedroom apartment in Hedon. In buying his home two decades ago, the unexpired term was of minimal significance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Reuben extended the lease just ahead of time in March. Reuben and the freeholder via the management company subsequently settled on the final figure of £5,000 . If he not met the deadline, the price would have increased by at least £900.
In 2013 we were contacted by Mr J Walker who, having completed a recently refurbished apartment in Hedon in May 1996. The question was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Identical premises in Hedon with 100 year plus lease were worth £243,000. The average ground rent payable was £65 billed monthly. The lease concluded on 2 November 2089. Given that there were 63 years unexpired we estimated the premium to the landlord for the lease extension to be between £20,000 and £23,000 plus fees.
Mr and Mrs. F Nelson took over the lease of a purpose-built flat in Hedon in April 1997. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical residencies in Hedon with a long lease were worth £181,600. The average ground rent payable was £55 invoiced per annum. The lease elapsed on 3 June 2078. Given that there were 52 years unexpired we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including expenses.