Hamworthy leases on residential deteriorating in value. if your lease has about ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Hamworthy will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Hamworthy with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Hamworthy can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Hamworthy lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kian owned a 2 bedroom apartment in Hamworthy on the market with a lease of just over 59 years unexpired. Kian informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Kian to invoke his statutory right. Kian procured expert legal guidance and secured satisfactory deal informally and readily saleable.
Mr K Hernández acquired a recently refurbished flat in Hamworthy in November 2001. The dilemma was if we could approximate the price could be for a 90 year lease extension. Similar properties in Hamworthy with an extended lease were in the region of £280,000. The average ground rent payable was £55 invoiced quarterly. The lease terminated in 2104. Having 78 years outstanding we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.
Last month we were called by Mrs Ellen Davis , who acquired a newly refurbished flat in Hamworthy in September 1996. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Identical properties in Hamworthy with an extended lease were valued about £186,000. The mid-range ground rent payable was £65 billed annually. The lease ran out in 2084. Taking into account 58 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £24,700 and £28,600 plus expenses.