Hebden Bridge leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Hebden Bridge tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Hebden Bridge you must investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Hebden Bridge with in excess of one hundred years unexpired 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 lawyers that we work with handle Hebden Bridge 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 conveyancer we work with provide it.
In the wake of 6 months of unsuccessful negotiations with the landlord of her basement apartment in Hebden Bridge, Mollie started the lease extension process as the eighty year threshold was rapidly nearing. The transaction was finalised in July 2015. The freeholder’s charges were negotiated to under 500 pounds.
Dr S Bell moved into a one bedroom apartment in Hebden Bridge in July 1999. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Hebden Bridge with a long lease were valued around £265,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded on 24 May 2099. Considering the 73 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
Last Christmas we were phoned by Mrs Y Davis , who took over the lease of a basement flat in Hebden Bridge in February 1998. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparable residencies in Hebden Bridge with 100 year plus lease were valued about £264,000. The mid-range ground rent payable was £60 billed every twelve months. The lease came to a finish on 12 June 2079. Given that there were 53 years remaining we calculated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 plus expenses.