The re-sale value of a leasehold property in Hamworthy depends on how long the lease has remaining. If it is near to or fewer than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the lease extension process when the lease still has 82 years remaining so that all matters can be finalised well before the 80 year cut off point. Statute enables Hamworthy qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Hamworthy with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | 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. |
The lawyers that we work with undertake Hamworthy 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.
Aiden owned a 2 bedroom apartment in Hamworthy being sold with a lease of a few days over fifty eight years left. Aiden informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Aiden to invoke his statutory right. Aiden obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
In 2013 we were approached by Ms Hannah Evans who, having acquired a studio apartment in Hamworthy in June 2003. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Hamworthy with a long lease were worth £250,000. The mid-range ground rent payable was £50 invoiced per annum. The lease lapsed on 15 April 2094. Considering the 69 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Last Autumn we were contacted by Mrs W Mercier , who took over the lease of a first floor apartment in Hamworthy in June 1999. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical premises in Hamworthy with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease concluded in 2105. Given that there were 80 years left we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.