It’s a harsh truth that a Hungerford residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Hungerford property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining dips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Hungerford will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| TSB | |
| Virgin |
Using our service will provide you increased control over the value of your Hungerford leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish 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.
Aaron was the the leasehold proprietor of a studio flat in Hungerford being marketed with a lease of just over sixty years remaining. Aaron informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Aaron to exercise his statutory right. Aaron procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mrs Lydia Jones acquired a basement flat in Hungerford in June 2011. We are asked if we could estimate the price could be for a ninety year extension to my lease. Similar homes in Hungerford with a long lease were worth £196,400. The mid-range amount of ground rent was £55 billed every twelve months. The lease expired on 26 August 2080. Having 54 years remaining we estimated the compensation to the freeholder for the lease extension to be within £35,200 and £40,600 exclusive of expenses.
In 2012 we were called by Ms Caitlin Murphy who, having owned a purpose-built flat in Hungerford in June 2012. The question was if we could approximate the price could be for a 90 year extension to my lease. Identical flats in Hungerford with an extended lease were worth £295,000. The average amount of ground rent was £45 invoiced every twelve months. The lease came to a finish in 2100. Having 74 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.