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 a lease extension can escalate significantly once the remaining term is below than 80 years
Leasehold residencies in Hessle with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Hessle can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Hessle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy correspondence with the landlord of her ground floor apartment in Hessle, Katherine initiated the lease extension process just as the lease was approaching the all-important eighty-year deadline. The transaction was concluded in November 2014. The freeholder’s charges were restricted to a tad over 550 GBP.
Last Spring we were e-mailed by Ms Sophie Jackson , who took over the lease of a purpose-built flat in Hessle in June 1997. The question was if we could approximate the premium would be for a ninety year extension to my lease. Similar flats in Hessle with an extended lease were worth £285,000. The average amount of ground rent was £45 collected yearly. The lease ran out on 7 August 2095. Considering the 71 years remaining we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.
In 2011 we were contacted by Dr Sophia Martin who, having acquired a studio flat in Hessle in January 2011. The question was if we could estimate the premium could be to prolong the lease by an additional years. Comparable premises in Hessle with an extended lease were in the region of £225,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease elapsed in 2084. Considering the 60 years outstanding we approximated the premium to the landlord for the lease extension to be within £23,800 and £27,400 plus professional charges.