It’s an underpublicised truth that a Hassocks residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Hassocks property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining slips under 80 years, you will end up paying 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 extra value that a lease extension will add the property Most leasehold owners in Hassocks will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold premises in Hassocks with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. 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 |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a landlord in Hassocks,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hassocks valuers.
After lengthy negotiations with the freeholder of her first floor apartment in Hassocks, Catherine initiated the lease extension process as the 80 year deadline was swiftly advancing. The transaction was finalised in March 2010. The freeholder’s costs were negotiated to below 500 GBP.
In 2009 we were phoned by Mr and Mrs. U Lefebvre who, having acquired a studio apartment in Hassocks in October 1995. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparable properties in Hassocks with a long lease were worth £193,400. The mid-range ground rent payable was £65 billed yearly. The lease expired in 2085. Taking into account 59 years remaining we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including legals.
Mr and Mrs. C Roux completed a first floor apartment in Hassocks in May 2012. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Similar properties in Hassocks with a long lease were in the region of £250,000. The average amount of ground rent was £50 invoiced per annum. The lease came to a finish in 2096. Given that there were 70 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.