Hedon leases on residential deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Hedon will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some situations you may not be entitled. There are also strict timetables and steps to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Hedon with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancing solicitors that we work with undertake 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 conveyancing solicitor we work with provide it.
Half a year ago Blake, came perilously near to the 80-year mark with the lease on his purpose- built flat in Hedon. Having purchased his home two decades ago, the length of the lease was of no relevance. Thankfully, he realised he would imminently be paying way over the odds for a lease extension. Blake arranged for a lease extension just in the nick of time last April. Blake and the freeholder subsequently agreed on a premium of £5,000 . If the lease had dipped lower than eighty years, the amount would have gone up by at least £875.
Mrs U Robinson took over the lease of a ground floor apartment in Hedon in October 1995. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative properties in Hedon with a long lease were worth £295,000. The average ground rent payable was £50 billed monthly. The lease terminated on 13 February 2100. Considering the 75 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
In 2013 we were called by Mr Noah Campbell who, having acquired a basement apartment in Hedon in March 2010. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Identical properties in Hedon with a long lease were valued about £250,400. The mid-range amount of ground rent was £65 collected quarterly. The lease ended in 2089. Having 64 years left we calculated the premium to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of expenses.