As the the remaining lease term of a Hove domestic lease decreases so does its value and therefore the value of your property. If the residual term has, over 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Hove will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Hove with in excess of 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | 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. |
Retaining our service gives you enhanced control over the value of your Hove leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the landlord of her leasehold apartment in Hove, Emma initiated the lease extension process as the 80 year deadline was rapidly coming. The lease extension was finalised in August 2012. The landlord’s charges were kept to an absolute minimum.
Last Christmas we were e-mailed by Dr K Alexander , who acquired a one bedroom flat in Hove in January 1996. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable residencies in Hove with 100 year plus lease were valued around £191,400. The mid-range ground rent payable was £55 collected monthly. The lease lapsed on 3 May 2079. Taking into account 54 years left we calculated the premium to the landlord for the lease extension to be within £34,200 and £39,600 plus fees.
Dr W Ward owned a recently refurbished flat in Hove in July 1999. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical flats in Hove with a long lease were worth £295,000. The average amount of ground rent was £45 invoiced yearly. The lease ran out on 21 March 2099. Having 74 years left we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.