Chances are that where you own a flat in Hetton Le Hole you actually own a long leasehold interest over your property
Leasehold properties in Hetton Le Hole with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| National Westminster Bank | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with handle Hetton Le Hole 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.
George owned a studio apartment in Hetton Le Hole being sold with a lease of a few days over 72 years left. George on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were George to exercise his statutory right. George procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
In 2012 we were e-mailed by Dr Alfie Vincent who, having owned a one bedroom apartment in Hetton Le Hole in February 1998. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Identical premises in Hetton Le Hole with 100 year plus lease were worth £257,800. The average ground rent payable was £65 collected every twelve months. The lease terminated in 2091. Taking into account 65 years as a residual term we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus legals.
Mr H Smith acquired a recently refurbished flat in Hetton Le Hole in March 1998. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable properties in Hetton Le Hole with an extended lease were worth £198,800. The average ground rent payable was £55 collected per annum. The lease terminated in 2081. Taking into account 55 years left we approximated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including legals.