It’s a harsh certainty that a Hatch and Old Basing residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Hatch and Old Basing property market.Where your lease has approximately 90 years left, you should start considering 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' 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 Most flat owners in Hatch and Old Basing will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold residencies in Hatch and Old Basing with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Hatch and Old Basing,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hatch and Old Basing valuers.
Last Christmas Omar, came precariously close to the eighty-year mark with the lease on his garden apartment in Hatch and Old Basing. Having bought his home two decades ago, the length of the lease was of minimal interest. Luckily, he became aware that he needed to take steps soon on Extending the lease. Omar extended the lease just under the wire in June. Omar and the freeholder via the management company subsequently settled on a premium of £5,500 . If the lease had dropped lower than 80 years, the amount would have escalated by at least £1,000.
Mr and Mrs. R Turner purchased a one bedroom flat in Hatch and Old Basing in April 2002. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable properties in Hatch and Old Basing with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed monthly. The lease ended in 2101. Taking into account 75 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Mr and Mrs. T Robinson moved into a first floor flat in Hatch and Old Basing in June 2009. The question was if we could estimate the premium could be to prolong the lease by 90 years. Identical properties in Hatch and Old Basing with a long lease were valued about £173,800. The average ground rent payable was £60 invoiced monthly. The lease lapsed in 2081. Considering the 55 years outstanding we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including expenses.