Unfortunately that a Hetton Le Hole residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Hetton Le Hole property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining slips under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Hetton Le Hole will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold residencies in Hetton Le Hole with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Hetton Le Hole can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in this area.
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 Hetton Le Hole lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Harvey, came dangerously near to the eighty-year threshold with the lease on his leasehold apartment in Hetton Le Hole. Having bought his property two decades ago, the lease term was of no significance. by good luck, he recognised he needed to take steps soon on Extending the lease. Harvey extended the lease just ahead of time last August. Harvey and the freeholder via the managing agents subsequently settled on a premium of £5,000 . If the lease had gone lower than 80 years, the premium would have escalated by a minimum £875.
In 2009 we were contacted by Mr and Mrs. V Wood who, having took over the lease of a purpose-built flat in Hetton Le Hole in March 1995. The question was if we could approximate the premium would be for a ninety year extension to my lease. Similar properties in Hetton Le Hole with 100 year plus lease were worth £174,200. The mid-range ground rent payable was £55 collected every twelve months. The lease expired on 21 September 2076. Having 51 years unexpired we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of costs.
Last month we were phoned by Mrs W Garcia , who took over the lease of a one bedroom flat in Hetton Le Hole in November 2005. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparative premises in Hetton Le Hole with a long lease were valued about £285,000. The mid-range ground rent payable was £45 billed annually. The lease ran out in 2096. Taking into account 71 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.