Hemsworth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Hemsworth enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Hemsworth you must check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Hemsworth flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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 |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Hemsworth,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hemsworth valuers.
Trailing unsuccessful discussions with the landlord of her two bedroom flat in Hemsworth, Millie started the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The lease extension was concluded in October 2014. The freeholder’s costs were negotiated to a tad over 700 pounds.
Last Summer we were contacted by Mrs Paige López , who purchased a basement flat in Hemsworth in August 1999. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative flats in Hemsworth with an extended lease were in the region of £265,000. The average amount of ground rent was £55 collected quarterly. The lease lapsed on 14 July 2100. Considering the 74 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
In 2013 we were e-mailed by Ms J François who, having bought a first floor flat in Hemsworth in September 1995. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable homes in Hemsworth with 100 year plus lease were valued around £166,400. The average ground rent payable was £60 invoiced monthly. The lease terminated in 2080. Having 54 years unexpired we estimated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 plus legals.