The market value of Hessle leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the unexpired lease term is less than 80 years
Leasehold premises in Hessle with over 100 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service gives you enhanced control over the value of your Hessle leasehold, as your property will be more valuable and saleable 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.
Half a year ago Daniel, came seriously close to the 80-year mark with the lease on his ground floor apartment in Hessle. Having bought his property 18 years ago, the length of the lease was of no importance. Luckily, he noticed he needed to take steps soon on Extending the lease. Daniel extended the lease just ahead of time last May. Daniel and the freeholder via the management company eventually agreed on the final figure of £5,000 . If the lease had slipped lower than eighty years, the premium would have become more costly by a minimum £875.
Dr Luca Cook bought a one bedroom apartment in Hessle in February 1995. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Similar residencies in Hessle with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 invoiced per annum. The lease ended in 2097. Having 72 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 plus professional charges.
Dr Lucas Martinez purchased a one bedroom flat in Hessle in September 2002. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar flats in Hessle with a long lease were valued about £233,200. The mid-range ground rent payable was £60 collected per annum. The lease concluded in 2086. Having 61 years unexpired we estimated the premium to the landlord to extend the lease to be within £22,800 and £26,400 plus expenses.