It’s an underpublicised certainty that a Hereford residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Hereford property market.Once your lease gets to 85ish years, 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 due. Most flat owners in Hereford will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Hereford with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| National Westminster Bank | |
| Skipton Building Society | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Hereford can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Hereford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Luca owned a studio apartment in Hereford on the market with a lease of a little over fifty eight years remaining. Luca on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Luca to exercise his statutory right. Luca procured expert advice and was able to make an informed decision and handle with the matter and sell the property.
In 2011 we were phoned by Ms R Ali who, having moved into a newly refurbished flat in Hereford in January 1995. The question was if we could approximate the price could be to prolong the lease by 90 years. Comparative homes in Hereford with 100 year plus lease were in the region of £206,200. The average ground rent payable was £55 billed quarterly. The lease expired in 2082. Having 56 years left we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including professional charges.
In 2011 we were called by Mr Owen Ramírez who, having was assigned a lease of a newly refurbished apartment in Hereford in January 2009. The question was if we could approximate the price would be to prolong the lease by an additional years. Comparable flats in Hereford with an extended lease were worth £300,000. The average ground rent payable was £50 invoiced every twelve months. The lease came to a finish in 2102. Given that there were 76 years left we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.