Unfortunately that a Hillsborough residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Hillsborough property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term falls under eighty years, you will end up paying 50% 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 flat owners in Hillsborough will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Skipton Building Society |
Regardless of whether you are a tenant or a freeholder in Hillsborough,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hillsborough valuers.
Following protracted correspondence with the freeholder of her ground floor apartment in Hillsborough, Isabel commenced the lease extension process as the eighty year threshold was quickly approaching. The legal work was concluded in November 2005. The freeholder’s costs were negotiated to about 600 GBP.
Mr J Sharif completed a recently refurbished apartment in Hillsborough in October 2012. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparable homes in Hillsborough with a long lease were in the region of £206,200. The average ground rent payable was £60 billed annually. The lease finished in 2082. Having 56 years left we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of costs.
Mr Ollie Lefèvre acquired a ground floor apartment in Hillsborough in June 1995. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar residencies in Hillsborough with a long lease were worth £300,000. The mid-range ground rent payable was £50 collected quarterly. The lease ended on 24 November 2102. Taking into account 76 years left we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.