There is no doubt about it a leasehold property in Hedge End is a wasting asset as a result of the shortening lease. Where the lease has, beyond 100 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Hedge End will qualify for this right; nevertheless a lawyer should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Hedge End with more than one hundred years left 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 property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.
Half a year ago Leo, came dangerously near to the eighty-year mark with the lease on his basement apartment in Hedge End. In buying his flat twenty years ago, the length of the lease was of little concern. As luck would have it, he recognised he needed to take action soon on Extending the lease. Leo arranged for a lease extension at the eleventh hour last June. Leo and the freeholder via the managing agents eventually settled on the final figure of £5,500 . If he failed to meet the deadline, the sum would have escalated by a minimum £1,025.
In 2011 we were called by Mr Jake Ramírez who, having bought a basement flat in Hedge End in January 1996. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable homes in Hedge End with a long lease were worth £275,000. The average ground rent payable was £55 collected annually. The lease elapsed in 2101. Considering the 76 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Last Winter we were approach by Mr and Mrs. S Garcia , who owned a basement flat in Hedge End in June 1997. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Hedge End with an extended lease were valued around £176,200. The average ground rent payable was £65 invoiced monthly. The lease ended in 2081. Having 56 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 plus legals.