It’s an underpublicised truth that a Hedge End residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Hedge End property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. The majority of flat owners in Hedge End will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Hedge End,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hedge End valuers.
Dexter was the the leasehold owner of a 2 bedroom flat in Hedge End on the market with a lease of fraction over sixty years remaining. Dexter informally contacted his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Dexter to exercise his statutory right. Dexter obtained expert advice and secured satisfactory deal informally and sell the property.
Last Winter we were e-mailed by Mr Ollie Stewart , who was assigned a lease of a garden flat in Hedge End in February 2009. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative flats in Hedge End with a long lease were valued around £183,600. The mid-range ground rent payable was £65 invoiced quarterly. The lease elapsed on 14 July 2082. Having 57 years left we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.
Mr and Mrs. S Brooks owned a one bedroom apartment in Hedge End in September 1995. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Similar flats in Hedge End with a long lease were in the region of £245,000. The average amount of ground rent was £50 invoiced monthly. The lease lapsed in 2093. Taking into account 68 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.