For anyone whose Hedge End home is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension.
Leasehold residencies in Hedge End with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service gives you increased control over the value of your Hedge End leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Thomas owned a studio apartment in Hedge End being sold with a lease of a few days over 61 years outstanding. Thomas informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Thomas to invoke his statutory right. Thomas procured expert advice and secured satisfactory deal informally and readily saleable.
In 2012 we were e-mailed by Dr I Walker who, having moved into a studio apartment in Hedge End in September 2010. 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 properties in Hedge End with an extended lease were worth £193,400. The average ground rent payable was £65 collected monthly. The lease concluded in 2085. Taking into account 59 years left we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of costs.
Last Winter we were called by Mrs Robyn Torres , who bought a one bedroom apartment in Hedge End in March 2005. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Similar homes in Hedge End with an extended lease were in the region of £255,000. The average amount of ground rent was £50 invoiced quarterly. The lease ran out on 3 February 2096. Having 70 years remaining we approximated the premium to the freeholder to extend the lease to be between £10,500 and £12,000 not including expenses.