Hackbridge leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Hackbridge will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Hackbridge with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Hackbridge,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hackbridge valuers.
Hunter owned a 2 bedroom flat in Hackbridge being sold with a lease of a little over 72 years remaining. Hunter informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Hunter to invoke his statutory right. Hunter obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Christmas we were approach by Mr Alex Bell , who acquired a one bedroom flat in Hackbridge in June 2012. The dilemma was if we could approximate the premium could be to prolong the lease by ninety years. Similar flats in Hackbridge with an extended lease were in the region of £243,000. The mid-range ground rent payable was £65 collected quarterly. The lease terminated in 2088. Taking into account 63 years remaining we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Hackbridge flat is 21 & 23 Carshalton Grove in May 2009. the Tribunal adopted the figures presented as the premiums payable by the Applicant i.e. a total of £20,750. This case was in relation to 2 flats. The number of years remaining on the existing lease(s) was 72 years.