With a long leasehold premises in Hayling Island, you are actually buying a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are fewer than 80 years left. Residents in Hayling Island with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has under 80 years left, under the relevant legislation the freeholder is entitled to calculate and levy a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Hayling Island with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Hayling Island lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to lengthy negotiations with the freeholder of her two bedroom apartment in Hayling Island, Naomi commenced the lease extension process as the eighty year threshold was fast nearing. The legal work was finalised in April 2006. The landlord’s fees were restricted to a tad over 500 GBP.
Last Winter we were phoned by Mr and Mrs. E Smith , who took over the lease of a basement apartment in Hayling Island in September 2003. The question was if we could approximate the price would be for a ninety year lease extension. Similar premises in Hayling Island with an extended lease were in the region of £218,000. The mid-range amount of ground rent was £45 collected annually. The lease ran out on 11 May 2088. Having 63 years unexpired we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 plus costs.
In 2014 we were phoned by Mr Daniel Petit who, having owned a garden flat in Hayling Island in March 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Hayling Island with a long lease were valued around £265,000. The mid-range ground rent payable was £55 invoiced per annum. The lease ran out in 2099. Having 74 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.