The market value of Hellesdon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the unexpired lease term is less than 80 years
Leasehold residencies in Hellesdon with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Hellesdon,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hellesdon valuers.
Milo was the the leasehold owner of a conversion flat in Hellesdon on the market with a lease of a few days over 72 years unexpired. Milo informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Milo to invoke his statutory right. Milo obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2012 we were called by Dr Daniel Sharif who, having moved into a purpose-built flat in Hellesdon in April 2008. We are asked if we could approximate the price would be to extend the lease by 90 years. Similar properties in Hellesdon with 100 year plus lease were worth £270,000. The average ground rent payable was £55 collected monthly. The lease lapsed on 5 April 2101. Having 75 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
In 2014 we were e-mailed by Mr Jasper Martinez who, having completed a garden apartment in Hellesdon in February 1995. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative properties in Hellesdon with an extended lease were in the region of £168,800. The mid-range ground rent payable was £60 billed monthly. The lease ended in 2081. Taking into account 55 years left we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus professional charges.