As the the remaining lease term of a Hackenthorpe residential lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of 100 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner rather than later. The majority of flat owners in Hackenthorpe will meet the qualifying criteria; however a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| TSB | |
| Royal Bank of Scotland | |
| Virgin |
The conveyancers that we work with procure Hackenthorpe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Daniel owned a conversion flat in Hackenthorpe being marketed with a lease of fraction over 61 years remaining. Daniel informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Christmas we were e-mailed by Mrs Phoebe Wood , who took over the lease of a basement flat in Hackenthorpe in July 1998. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable residencies in Hackenthorpe with a long lease were valued around £275,000. The mid-range ground rent payable was £55 invoiced annually. The lease lapsed on 13 August 2103. Taking into account 77 years unexpired we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus costs.
Dr Thomas Campbell purchased a basement apartment in Hackenthorpe in May 1999. We are asked if we could estimate the price would be for a 90 year lease extension. Similar flats in Hackenthorpe with 100 year plus lease were worth £183,600. The mid-range amount of ground rent was £65 billed yearly. The lease terminated on 9 June 2083. Having 57 years unexpired we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of costs.