When it comes to domestic leasehold premises in Hemsworth, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Leasehold owners in Hemsworth with a lease approaching 81 years unexpired should seriously consider extending it without delay. When a lease has below 80 years left, under the current Act the landlord is entitled to calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Hemsworth with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the freeholder of her basement apartment in Hemsworth, Megan commenced the lease extension process as the 80 year threshold was quickly approaching. The legal work was finalised in October 2015. The landlord’s charges were kept to an absolute minimum.
Dr B Rogers owned a one bedroom apartment in Hemsworth in June 1999. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Similar premises in Hemsworth with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease elapsed in 2104. Taking into account 79 years unexpired we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.
In 2013 we were approached by Mr Riley Khan who, having completed a studio apartment in Hemsworth in March 2007. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical properties in Hemsworth with an extended lease were valued about £193,400. The average ground rent payable was £65 collected every twelve months. The lease elapsed in 2084. Given that there were 59 years as a residual term we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including expenses.