On the balance of probabilities where you own a flat in Hedon you actually own a long leasehold interest over your property
Leasehold properties in Hedon with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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. |
The lawyers that we work with procure Hedon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Subsequent to lengthy discussions with the freeholder of her ground floor flat in Hedon, Hannah commenced the lease extension process just as the lease was coming close to the crucial eighty-year mark. The legal work was finalised in November 2014. The landlord’s fees were negotiated to below 700 GBP.
Last Spring we were phoned by Mr and Mrs. T Nguyen , who purchased a one bedroom apartment in Hedon in November 1996. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Hedon with a long lease were valued about £243,000. The average amount of ground rent was £65 invoiced every twelve months. The lease expired on 10 February 2087. Having 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of expenses.
Mr and Mrs. N André moved into a garden apartment in Hedon in August 2009. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable flats in Hedon with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 collected annually. The lease came to a finish in 2076. Given that there were 52 years left we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.