Hamworthy leases on residential properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Hamworthy will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Virgin |
Retaining our service gives you better control over the value of your Hamworthy leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oscar owned a high value apartment in Hamworthy on the market with a lease of a little over 59 years remaining. Oscar informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Oscar to exercise his statutory right. Oscar procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Last year we were phoned by Mrs A Girard , who completed a studio flat in Hamworthy in May 2009. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable properties in Hamworthy with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 billed annually. The lease expired in 2097. Having 71 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
In 2011 we were called by Ms E Jackson who, having took over the lease of a newly refurbished apartment in Hamworthy in April 2009. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Comparative homes in Hamworthy with an extended lease were in the region of £254,200. The mid-range ground rent payable was £60 invoiced per annum. The lease concluded on 21 October 2077. Having 51 years remaining we calculated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 not including legals.