Chances are that where you own a flat in Hilsea you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | 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. |
| 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. |
Engaging our service will provide you better control over the value of your Hilsea leasehold, as your property will be more valuable and marketable in relation to the 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 protracted negotiations with the landlord of her ground floor flat in Hilsea, Katherine started the lease extension process as the 80 year threshold was fast coming. The transaction was finalised in April 2011. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. B Murphy bought a basement apartment in Hilsea in June 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Hilsea with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 billed monthly. The lease end date was on 22 February 2098. Considering the 72 years left we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.
In 2012 we were phoned by Dr Seth Brooks who, having purchased a one bedroom apartment in Hilsea in November 1999. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Identical homes in Hilsea with 100 year plus lease were in the region of £233,200. The average amount of ground rent was £60 billed yearly. The lease came to a finish on 9 October 2087. Given that there were 61 years remaining we calculated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 not including fees.