Unfortunately that a Hatch and Old Basing residential lease is a deteriorating 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 depreciation being disguised by increases in the Hatch and Old Basing property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining dips under eighty years, you will end up paying half 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 the property The majority of leasehold owners in Hatch and Old Basing will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if 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 from beginning to end of the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Hatch and Old Basing 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 lawyer we work with provide it.
After unsuccessful negotiations with the freeholder of her one bedroom flat in Hatch and Old Basing, Tia commenced the lease extension process just as her lease was approaching the all-important 80-year threshold. The lease extension was finalised in April 2012. The freeholder’s charges were restricted to about 700 pounds.
Last Christmas we were called by Ms Alexandra Cox , who was assigned a lease of a ground floor flat in Hatch and Old Basing in July 2004. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar premises in Hatch and Old Basing with 100 year plus lease were valued around £275,000. The average amount of ground rent was £55 invoiced yearly. The lease elapsed on 3 March 2103. Given that there were 77 years unexpired we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.
In 2009 we were approached by Dr R Rodríguez who, having was assigned a lease of a first floor flat in Hatch and Old Basing in February 2001. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Identical flats in Hatch and Old Basing with 100 year plus lease were valued about £183,600. The average ground rent payable was £65 invoiced quarterly. The lease concluded in 2083. Taking into account 57 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of fees.