Unfortunately that a Hawarden residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Hawarden property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining slips below 80 years, you will end up paying 50% 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 Hawarden will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes 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 Hawarden with in excess of 100 years left 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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Leeds Building Society | |
| TSB | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Hawarden,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hawarden valuers.
Kian owned a high value flat in Hawarden on the market with a lease of fraction over 59 years unexpired. Kian on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be payable on a lease extension were Kian to exercise his statutory right. Kian procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Dr Holly Petit owned a garden flat in Hawarden in June 2011. The question was if we could approximate the premium could be for a ninety year extension to my lease. Identical flats in Hawarden with 100 year plus lease were worth £300,000. The average ground rent payable was £50 billed every twelve months. The lease elapsed in 2101. Having 75 years outstanding we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
Mr K Peterson acquired a first floor flat in Hawarden in November 1997. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar properties in Hawarden with a long lease were worth £250,400. The mid-range ground rent payable was £65 billed monthly. The lease terminated in 2090. Given that there were 64 years outstanding we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of expenses.