It’s a harsh truth that a Hazlemere residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Hazlemere property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining slips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Hazlemere will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold premises in Hazlemere with more than 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Godiva Mortgages | |
| TSB | |
| Yorkshire Building Society |
Retaining our service gives you enhanced control over the value of your Hazlemere leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kyle owned a 2 bedroom apartment in Hazlemere on the market with a lease of a little over sixty years outstanding. Kyle informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be due on a lease extension were Kyle to exercise his statutory right. Kyle obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Dr Ollie Evans moved into a basement flat in Hazlemere in September 1999. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative properties in Hazlemere with a long lease were in the region of £243,000. The average amount of ground rent was £65 collected monthly. The lease finished in 2089. Given that there were 63 years left we calculated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of professional charges.
Mr and Mrs. W Gómez moved into a studio flat in Hazlemere in March 2004. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Similar homes in Hazlemere with an extended lease were worth £181,600. The average amount of ground rent was £55 invoiced yearly. The lease finished in 2078. Given that there were 52 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including fees.