Chances are that if you own a flat in Hilsea you actually own a long leasehold interest over your property
Leasehold premises in Hilsea with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service gives you enhanced control over the value of your Hilsea leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Felix, came critically near to the eighty-year threshold with the lease on his leasehold apartment in Hilsea. In buying his home two decades ago, the unexpired term was of minimal concern. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Felix was able to extend his lease at the eleventh hour last April. Felix and the freeholder via the management company eventually settled on sum of £5,000 . If the lease had slid below 80 years, the price would have escalated by a minimum £975.
In 2009 we were called by Mr and Mrs. R Jackson who, having purchased a ground floor flat in Hilsea in May 2012. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparative residencies in Hilsea with an extended lease were worth £225,800. The mid-range amount of ground rent was £60 collected monthly. The lease ended on 27 November 2086. Having 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 plus legals.
Mr Kai Carter completed a one bedroom apartment in Hilsea in May 2001. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparable residencies in Hilsea with 100 year plus lease were valued about £210,000. The average amount of ground rent was £50 billed per annum. The lease finished on 10 May 2106. Taking into account 80 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.