The market value of a leasehold property in Hayling Island is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed prior to the 80 year threshold. Current legislation enables Hayling Island qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of ninety years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Hayling Island with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Hayling Island can be a difficult process. We recommend you procure guidance from a conveyancer and valuer 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 Hayling Island lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Theo was the the leasehold proprietor of a high value apartment in Hayling Island on the market with a lease of a little over sixty years outstanding. Theo on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Theo to invoke his statutory right. Theo procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2010 we were phoned by Mr and Mrs. E Leroy who, having bought a garden apartment in Hayling Island in April 2003. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable premises in Hayling Island with an extended lease were in the region of £254,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ended in 2076. Taking into account 51 years unexpired we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of expenses.
Mrs Rachael Campbell owned a studio flat in Hayling Island in June 2007. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar residencies in Hayling Island with a long lease were valued about £210,600. The mid-range ground rent payable was £45 invoiced monthly. The lease ran out in 2087. Taking into account 62 years left we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus costs.