The market value of Hedon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is less than eighty years
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
Lease extensions in Hedon can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
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 a wealth of experience dealing with Hedon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Cameron, came very close to the eighty-year threshold with the lease on his purpose- built apartment in Hedon. In buying his property 18 years previously, the length of the lease was of no importance. by good luck, he became aware that he needed to take action soon on Extending the lease. Cameron was able to extend his lease just under the wire in March. Cameron and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If the lease had slid lower than eighty years, the premium would have increased by a minimum £1,125.
Last Summer we were approach by Mr and Mrs. G White , who was assigned a lease of a ground floor flat in Hedon in April 1995. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Similar properties in Hedon with a long lease were valued around £267,600. The mid-range amount of ground rent was £65 collected annually. The lease terminated in 2092. Given that there were 67 years left we estimated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 plus expenses.
In 2013 we were approached by Dr H Scott who, having was assigned a lease of a one bedroom apartment in Hedon in May 1999. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparative flats in Hedon with a long lease were worth £206,200. The average ground rent payable was £55 invoiced per annum. The lease expiry date was on 27 April 2081. Having 56 years outstanding we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of fees.