The re-sale value of a leasehold property in Hedge End and Botley depends on how long the lease has left to run. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be finalised prior to the 80 year mark. Leasehold Reform legislation entitles Hedge End and Botley qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| 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. |
The conveyancers that we work with procure Hedge End and Botley 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 9 months of unsuccessful negotiations with the freeholder of her two bedroom flat in Hedge End and Botley, Maisie commenced the lease extension process just as the lease was approaching the crucial 80-year mark. The legal work was finalised in October 2007. The landlord’s fees were restricted to approximately 600 pounds.
In 2014 we were contacted by Mr and Mrs. Y Gómez who, having took over the lease of a studio apartment in Hedge End and Botley in August 2007. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative flats in Hedge End and Botley with a long lease were worth £191,400. The mid-range amount of ground rent was £55 collected yearly. The lease concluded in 2079. Given that there were 54 years left we estimated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of expenses.
Last Autumn we were phoned by Ms Chelsea García , who completed a studio apartment in Hedge End and Botley in January 2011. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar residencies in Hedge End and Botley with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 billed per annum. The lease lapsed on 17 January 2099. Given that there were 74 years remaining we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.