Hay On Wye leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Hay On Wye residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Hay On Wye you must check if your lease has between 70 and 90 years left. There are good reasons why a Hay On Wye flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Skipton Building Society |
Lease extensions in Hay On Wye can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in lease extensions.
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 Hay On Wye lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ben was the the leasehold owner of a high value apartment in Hay On Wye on the market with a lease of a few days over 72 years outstanding. Ben informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Ben to invoke his statutory right. Ben procured expert advice and was able to make a more informed decision and deal with the matter and sell the property.
Last Winter we were approach by Mrs Millie David , who took over the lease of a one bedroom flat in Hay On Wye in September 2003. The question was if we could approximate the price would likely be to extend the lease by ninety years. Similar premises in Hay On Wye with a long lease were valued around £210,000. The average ground rent payable was £50 invoiced annually. The lease termination date was on 10 February 2106. Having 80 years left we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.
In 2011 we were e-mailed by Mr and Mrs. W García who, having bought a first floor apartment in Hay On Wye in January 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparative premises in Hay On Wye with a long lease were valued around £275,000. The mid-range ground rent payable was £45 collected annually. The lease finished on 9 March 2095. Taking into account 69 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.