There is no doubt about it a leasehold property in Hillsborough is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 125 years remaining then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Hillsborough will qualify for this right; that being said a lawyer should be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Hillsborough with in excess of 100 years remaining 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service gives you better control over the value of your Hillsborough leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy negotiations with the freeholder of her purpose-built apartment in Hillsborough, Erin initiated the lease extension process just as her lease was nearing the all-important eighty-year mark. The legal work was finalised in May 2009. The landlord’s fees were restricted to approximately 700 pounds.
In 2009 we were approached by Mr Aarav Gómez who, having completed a one bedroom apartment in Hillsborough in April 2000. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative properties in Hillsborough with an extended lease were worth £210,000. The average amount of ground rent was £50 invoiced monthly. The lease ended on 5 November 2106. Considering the 80 years left we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.
Last April we were e-mailed by Mr and Mrs. I Bertrand , who bought a basement flat in Hillsborough in January 2009. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparable flats in Hillsborough with an extended lease were valued about £280,000. The average ground rent payable was £45 billed annually. The lease terminated on 16 March 2095. Taking into account 69 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.