It’s an underpublicised truth that a Hemsworth residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Hemsworth property prices.Once your lease gets to 85ish years, you should start thinking about 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 amount will be payable. The majority of flat owners in Hemsworth will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Hemsworth with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Halifax | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with handle Hemsworth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Jamie was the the leasehold proprietor of a high value apartment in Hemsworth being sold with a lease of a few days over 72 years unexpired. Jamie on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be due on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2010 we were phoned by Dr P Harris who, having owned a purpose-built flat in Hemsworth in February 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Comparable homes in Hemsworth with an extended lease were valued around £183,600. The mid-range amount of ground rent was £65 billed per annum. The lease terminated on 11 April 2083. Given that there were 57 years remaining we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.
Last Winter we were called by Mr and Mrs. M Young , who acquired a purpose-built apartment in Hemsworth in October 2003. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Comparable premises in Hemsworth with an extended lease were worth £245,000. The average ground rent payable was £50 collected per annum. The lease terminated on 23 February 2094. Given that there were 68 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.