Unfortunately that a Hemsworth residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Hemsworth property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Hemsworth will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Hemsworth leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Jack, came dangerously close to the eighty-year mark with the lease on his purpose- built flat in Hemsworth. Having purchased his flat two decades ago, the unexpired term was of little relevance. Fortunately, he realised he would soon be paying an inflated amount for Extending the lease. Jack arranged for a lease extension just ahead of time last June. Jack and the freeholder eventually settled on an amount of £5,000 . If the lease had gone lower than 80 years, the sum would have escalated by a minimum £1,000.
Mr Oliver Lefèvre moved into a ground floor flat in Hemsworth in October 2008. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative homes in Hemsworth with 100 year plus lease were worth £246,800. The average ground rent payable was £60 invoiced quarterly. The lease came to a finish in 2076. Having 50 years remaining we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of fees.
Last month we were contacted by Dr Courtney Green , who acquired a recently refurbished apartment in Hemsworth in July 1999. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Identical residencies in Hemsworth with a long lease were valued around £208,200. The average amount of ground rent was £65 invoiced quarterly. The lease came to a finish on 21 May 2087. Considering the 61 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus professional charges.