Unfortunately that a Hartlepool residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Hartlepool property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining dips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Hartlepool will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
Leasehold properties in Hartlepool with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Coventry Building Society | |
| The Mortgage Works |
The conveyancing solicitors that we work with procure 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.
Gabriel was the the leasehold owner of a studio flat in Hartlepool on the market with a lease of just over fifty eight years outstanding. Gabriel informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last year we were contacted by Dr John Davies , who moved into a one bedroom apartment in Hartlepool in March 2005. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparable homes in Hartlepool with a long lease were valued about £257,800. The average ground rent payable was £65 invoiced quarterly. The lease concluded in 2091. Given that there were 65 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 plus professional charges.
In 2012 we were approached by Ms J Simon who, having acquired a ground floor flat in Hartlepool in August 2002. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical residencies in Hartlepool with 100 year plus lease were worth £196,400. The mid-range ground rent payable was £55 billed yearly. The lease came to a finish on 15 November 2080. Taking into account 54 years left we estimated the premium to the landlord to extend the lease to be within £35,200 and £40,600 exclusive of fees.