Hathern leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Hathern residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hathern you should see if your lease has between seventy and 90 years remaining. There are good reasons why a Hathern flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is put in place without delay
Leasehold premises in Hathern with over one hundred years left on the lease are sometimes 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 upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hathern can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Hathern lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dylan owned a high value apartment in Hathern being sold with a lease of a little over 61 years remaining. Dylan on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Dylan to exercise his statutory right. Dylan procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2014 we were phoned by Mrs Bethan Wilson who, having took over the lease of a ground floor flat in Hathern in February 1996. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative homes in Hathern with a long lease were worth £181,600. The mid-range amount of ground rent was £55 collected annually. The lease end date was on 3 August 2077. Given that there were 52 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus professional charges.
Last Summer we were contacted by Mrs Samantha Lambert , who owned a newly refurbished apartment in Hathern in June 2010. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Similar flats in Hathern with 100 year plus lease were worth £285,000. The average ground rent payable was £45 billed per annum. The lease elapsed in 2097. Considering the 72 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.