Hedge End leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Hedge End tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Hedge End you would be well advised to investigate if your lease has between 70 and ninety years left. There are compelling reasons why a Hedge End flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is put in place without delay
Leasehold premises in Hedge End with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Hedge End 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 lawyer we work with provide it.
Last October Logan, came very near to the 80-year threshold with the lease on his basement apartment in Hedge End. Having bought his home 19 years ago, the lease term was of minimal relevance. Luckily, he became aware that he would soon be paying an inflated amount for Extending the lease. Logan extended the lease at the eleventh hour in July. Logan and the freeholder via the management company subsequently settled on a premium of £6,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £925.
Last Summer we were phoned by Mr and Mrs. A Nelson , who completed a recently refurbished flat in Hedge End in April 2009. 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 with an extended lease were valued about £255,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease concluded on 24 October 2097. Considering the 71 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Mr and Mrs. I Clark bought a purpose-built flat in Hedge End in March 2003. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Comparative residencies in Hedge End with a long lease were worth £254,200. The mid-range amount of ground rent was £60 billed every twelve months. The lease lapsed on 4 April 2077. Taking into account 51 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 plus fees.