It’s an underpublicised certainty that a Hartlepool residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Hartlepool property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be due. The majority of flat owners in Hartlepool will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold residencies in Hartlepool with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Halifax | |
| Leeds Building Society | |
| National Westminster Bank | |
| Virgin |
The conveyancers that we work with handle Hartlepool 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.
Subsequent to lengthy correspondence with the freeholder of her ground floor apartment in Hartlepool, Mia initiated the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The legal work was finalised in April 2011. The freeholder’s fees were kept to an absolute minimum.
Last year we were approach by Mr Lucas Brooks , who completed a studio flat in Hartlepool in June 2007. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar residencies in Hartlepool with 100 year plus lease were valued about £280,000. The average ground rent payable was £45 billed yearly. The lease lapsed on 9 April 2095. Taking into account 69 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.
Last Christmas we were phoned by Mr L Lambert , who completed a ground floor apartment in Hartlepool in October 2007. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar homes in Hartlepool with 100 year plus lease were worth £216,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease finished on 11 March 2084. Given that there were 58 years outstanding we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including costs.