When it comes to residential leasehold premises in Hilsea, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are fewer than eighty years left. Leasehold owners in Hilsea with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has below eighty years outstanding, under the relevant Act the landlord is entitled to calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Using our service will provide you better control over the value of your Hilsea leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Logan, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Hilsea. Having bought his property two decades ago, the unexpired term was of little concern. Luckily, it dawned on him that he needed to take action soon on a lease extension. Logan was able to extend his lease at the eleventh hour in April. Logan and the landlord in the end settled on sum of £5,000 . If the lease had dipped lower than 80 years, the premium would have increased by a minimum £1,000.
Dr Daniel Gunderson bought a first floor apartment in Hilsea in February 2005. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Hilsea with an extended lease were worth £267,600. The mid-range ground rent payable was £65 collected annually. The lease concluded on 1 August 2092. Taking into account 67 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 plus expenses.
Mrs D Reed was assigned a lease of a purpose-built apartment in Hilsea in November 2005. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparative premises in Hilsea with a long lease were in the region of £201,200. The average ground rent payable was £55 collected every twelve months. The lease expired in 2081. Given that there were 56 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of legals.