When it comes to domestic leasehold premises in Hilsea, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are fewer than 80 years remaining. Anyone in Hilsea with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has below 80 years outstanding, under the relevant Act the freeholder can calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Hilsea 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 premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Halifax | |
| Leeds Building Society |
The conveyancers that we work with undertake Hilsea 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 lawyer we work with provide it.
In recent months Aiden, started to get close to the 80-year threshold with the lease on his garden apartment in Hilsea. Having bought his property 19 years ago, the length of the lease was of no interest. Fortunately, he noticed he needed to take steps soon on a lease extension. Aiden extended the lease just under the wire in September. Aiden and the landlord subsequently agreed on a premium of £5,500 . If he not met the deadline, the premium would have become more exhorbitant by a minimum £1,075.
Last year we were e-mailed by Mr Kian Wilson , who acquired a ground floor apartment in Hilsea in November 2008. The question was if we could estimate the premium would be to extend the lease by 90 years. Comparable residencies in Hilsea with a long lease were worth £257,800. The mid-range ground rent payable was £65 billed quarterly. The lease expired on 26 April 2091. Having 65 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 plus fees.
Last Autumn we were phoned by Mr and Mrs. N Rodríguez , who purchased a garden apartment in Hilsea in January 1995. The question was if we could estimate the price would be to extend the lease by a further 90 years. Comparative flats in Hilsea with an extended lease were in the region of £191,400. The average ground rent payable was £55 billed quarterly. The lease concluded in 2080. Taking into account 54 years unexpired we calculated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 plus legals.