The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Hedon have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Do give careful consideration before delaying your Hedon lease extension. Postponing the costs today simply escalates the premium you will ultimately have to pay to extend the lease.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service will provide you better control over the value of your Hedon leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of lengthy correspondence with the landlord of her basement apartment in Hedon, Laura initiated the lease extension process just as her lease was coming close to the crucial 80-year mark. The transaction completed in March 2012. The landlord’s costs were kept to an absolute minimum.
Last month we were contacted by Mr N Murphy , who moved into a first floor flat in Hedon in October 1995. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical properties in Hedon with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 billed annually. The lease ended on 7 July 2081. Given that there were 55 years outstanding we approximated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 plus fees.
Last Autumn we were e-mailed by Ms G Pérez , who moved into a garden apartment in Hedon in July 2004. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Similar properties in Hedon with a long lease were worth £300,000. The mid-range ground rent payable was £50 collected every twelve months. The lease ended in 2101. Given that there were 75 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.