There is no doubt about it a leasehold flat or house in Hedge End is a wasting asset as a result of the shortening lease. If the residual term has, in excess of 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Hedge End will qualify for this right; nevertheless a conveyancer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Hedge End can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Hedge End lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ethan was the the leasehold proprietor of a high value flat in Hedge End being marketed with a lease of fraction over fifty eight years unexpired. Ethan on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ethan to exercise his statutory right. Ethan obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2013 we were phoned by Dr Ollie Allen who, having bought a purpose-built apartment in Hedge End in October 2002. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable properties in Hedge End with 100 year plus lease were in the region of £261,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease ran out in 2077. Taking into account 52 years left we approximated the premium to the landlord to extend the lease to be within £39,000 and £45,000 plus professional charges.
Last Autumn we were phoned by Dr H Green , who purchased a first floor apartment in Hedge End in November 2001. The question was if we could approximate the price would be for a 90 year lease extension. Identical residencies in Hedge End with a long lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease finished in 2088. Having 63 years unexpired we calculated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of fees.