The re-sale value of a leasehold property in Hedge End depends on how long the lease has left to run. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be finalised in advance of the eighty year cut off point. Statute enables Hedge End qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Hedge End with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Engaging our service gives you enhanced control over the value of your Hedge End leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Connor, started to get near to the eighty-year mark with the lease on his one bedroom flat in Hedge End. In buying his property 18 years previously, the unexpired term was of minimal relevance. Luckily, he noticed he would soon be paying way over the odds for Extending the lease. Connor was able to extend his lease just in the nick of time in April. Connor and the freeholder via the management company ultimately agreed on the final figure of £5,500 . If the lease had dropped lower than 80 years, the premium would have become more exhorbitant by at least £1,025.
Last Christmas we were phoned by Ms Y Cooper , who purchased a one bedroom apartment in Hedge End in August 2000. We are asked if we could approximate the price would be for a ninety year lease extension. Identical residencies in Hedge End with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease ended in 2103. Taking into account 77 years left we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.
Mr and Mrs. G Torres owned a ground floor apartment in Hedge End in January 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Similar properties in Hedge End with an extended lease were worth £183,600. The average amount of ground rent was £65 invoiced annually. The lease ran out in 2083. Considering the 57 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.