The market value of Hilsea leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the unexpired lease term is less than 80 years
Leasehold premises in Hilsea with over one hundred years left 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 to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Hilsea can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Hilsea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Riley was the the leasehold owner of a 2 bedroom flat in Hilsea on the market with a lease of a few days over fifty eight years outstanding. Riley on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Riley to exercise his statutory right. Riley obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2010 we were phoned by Dr Gabriel González who, having owned a first floor apartment in Hilsea in October 2001. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Similar residencies in Hilsea with an extended lease were worth £216,000. The average amount of ground rent was £60 billed quarterly. The lease terminated in 2084. Given that there were 58 years unexpired we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including fees.
Dr P Wright completed a studio apartment in Hilsea in March 2009. We are asked if we could approximate the price would be to prolong the lease by ninety years. Identical premises in Hilsea with a long lease were valued around £200,000. The average amount of ground rent was £50 billed per annum. The lease ran out on 12 June 2104. Considering the 78 years left we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.