When it comes to domestic leasehold property in Hedge End and Botley, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Residents in Hedge End and Botley with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. Once a lease has fewer than eighty years left, under the relevant Act the landlord is entitled to calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Using our service will provide you better control over the value of your Hedge End and Botley leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Benjamin owned a conversion flat in Hedge End and Botley being sold with a lease of just over 59 years outstanding. Benjamin informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2014 we were contacted by Dr D Hernández who, having took over the lease of a purpose-built flat in Hedge End and Botley in November 2009. The question was if we could approximate the price would be to prolong the lease by an additional years. Similar properties in Hedge End and Botley with a long lease were worth £248,000. The average ground rent payable was £65 collected quarterly. The lease concluded in 2089. Given that there were 63 years remaining we estimated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including costs.
In 2010 we were phoned by Mr and Mrs. J Mercier who, having moved into a purpose-built flat in Hedge End and Botley in August 2011. We are asked if we could approximate the premium could be to extend the lease by ninety years. Identical homes in Hedge End and Botley with a long lease were worth £181,600. The mid-range ground rent payable was £55 billed every twelve months. The lease expiry date was in 2078. Taking into account 52 years unexpired we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including fees.