On the balance of probabilities where you own a flat in Hinckley you actually own a long leasehold interest over your property
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Hinckley leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Gabriel was the the leasehold owner of a studio flat in Hinckley on the market with a lease of fraction over 72 years unexpired. Gabriel on an informal basis spoke with his freeholder a well known London-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 to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Summer we were called by Mr and Mrs. A Reed , who bought a ground floor flat in Hinckley in September 2008. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar premises in Hinckley with a long lease were worth £280,000. The mid-range amount of ground rent was £55 billed yearly. The lease lapsed on 21 June 2103. Taking into account 78 years remaining we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.
Last Spring we were approach by Mr and Mrs. J Lefèvre , who moved into a one bedroom flat in Hinckley in March 2007. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar flats in Hinckley with an extended lease were valued about £186,000. The average amount of ground rent was £65 billed annually. The lease ran out in 2083. Taking into account 58 years left we estimated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 plus professional charges.