Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in East Hunsbury. Inevitably, the term of lease remaining reduces over time. This is often overlooked and only becomes a problem when the property has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in East Hunsbury have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. You should give careful deliberation before putting off your East Hunsbury lease extension. Putting off that expense now likely increases the price you will eventually incur for a lease extension
Leasehold residencies in East Hunsbury with in excess of 100 years outstanding on the lease are often 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 to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| Virgin |
Regardless of whether you are a tenant or a freeholder in East Hunsbury,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with East Hunsbury valuers.
Oliver was the the leasehold owner of a conversion flat in East Hunsbury being marketed with a lease of a few days over 72 years remaining. Oliver informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Oliver to exercise his statutory right. Oliver obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Dr C Watson took over the lease of a first floor apartment in East Hunsbury in February 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Identical properties in East Hunsbury with an extended lease were in the region of £250,000. The average amount of ground rent was £50 billed yearly. The lease finished in 2095. Having 69 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
In 2010 we were contacted by Mr and Mrs. J Phillips who, having bought a first floor flat in East Hunsbury in July 2001. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Comparative flats in East Hunsbury with a long lease were worth £285,000. The average ground rent payable was £55 collected annually. The lease lapsed in 2106. Taking into account 80 years remaining we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.