The re-sale value of a leasehold property in Hedge End and Botley is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be finalised ahead of the 80 year threshold. Leasehold Reform legislation entitles Hedge End and Botley qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Hedge End and Botley can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 procuring Hedge End and Botley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Seth, came seriously close to the eighty-year mark with the lease on his purpose- built flat in Hedge End and Botley. In buying his property 18 years ago, the lease term was of little importance. Luckily, he realised he needed to take action soon on a lease extension. Seth extended the lease just in the nick of time last March. Seth and the freeholder via the managing agents in the end settled on an amount of £5,500 . If the lease had dipped to less than 80 years, the figure would have increased by a minimum £1,025.
Ms Zoe Cook took over the lease of a purpose-built flat in Hedge End and Botley in February 1998. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Identical properties in Hedge End and Botley with 100 year plus lease were in the region of £265,200. The average amount of ground rent was £65 invoiced yearly. The lease lapsed on 3 November 2091. Having 66 years outstanding we calculated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 not including costs.
Last Autumn we were approach by Dr G Wilson , who was assigned a lease of a one bedroom flat in Hedge End and Botley in August 2009. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Hedge End and Botley with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced per annum. The lease ended in 2080. Given that there were 55 years unexpired we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of fees.