There is no doubt about it a leasehold flat or house in Hedge End is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of 125 years to run then this decrease may be negligible however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease sooner rather than later. Many flat owners in Hedge End will meet the qualifying criteria; that being said a conveyancer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| 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.
Off the back of unsuccessful negotiations with the landlord of her garden apartment in Hedge End, Shannon initiated the lease extension process just as her lease was nearing the crucial 80-year deadline. The lease extension completed in January 2007. The landlord’s fees were kept to an absolute minimum.
Last Summer we were approach by Mrs Isabel Lambert , who completed a purpose-built flat in Hedge End in May 2004. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative premises in Hedge End with a long lease were worth £225,400. The mid-range ground rent payable was £45 billed per annum. The lease expired on 27 February 2089. Considering the 64 years remaining we estimated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 plus expenses.
In 2013 we were contacted by Mr and Mrs. Y Wood who, having purchased a first floor apartment in Hedge End in January 1999. We are asked if we could approximate the price could be to extend the lease by 90 years. Identical flats in Hedge End with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease lapsed on 23 April 2100. Considering the 75 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.