It’s a harsh truth that a Hathern 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 reduction being disguised by increases in the Hathern property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term dips under 80 years, you will end up paying 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 additional value that a lease extension will add the property Most flat owners in Hathern will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Hathern with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Halifax | |
| TSB | |
| Royal Bank of Scotland |
Retaining our service gives you enhanced control over the value of your Hathern leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Sebastian, came very close to the eighty-year mark with the lease on his first floor flat in Hathern. Having bought his flat twenty years previously, the unexpired term was of minimal interest. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Sebastian extended the lease at the eleventh hour last April. Sebastian and the landlord who owned the flat above in the end agreed on the final figure of £6,000 . If he not met the deadline, the figure would have gone up by a minimum £1,025.
In 2010 we were phoned by Mr and Mrs. M Ward who, having took over the lease of a recently refurbished apartment in Hathern in April 2012. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar homes in Hathern with 100 year plus lease were valued around £295,000. The average ground rent payable was £45 invoiced per annum. The lease ran out on 16 January 2100. Having 74 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.
Last Christmas we were contacted by Mr and Mrs. G Roux , who was assigned a lease of a first floor flat in Hathern in May 1995. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar homes in Hathern with a long lease were valued about £243,000. The mid-range ground rent payable was £65 collected every twelve months. The lease expired on 28 January 2089. Having 63 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of professional charges.