With a domestic leasehold property in Hindhead, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may 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 less than eighty years remaining. Anyone in Hindhead with a lease nearing 81 years left should seriously think of extending it without delay. Once the lease term has under 80 years left, under the relevant statute the landlord can calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Hindhead with over one hundred years unexpired on the lease are often 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Using our service will provide you increased control over the value of your Hindhead leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the landlord of her purpose-built apartment in Hindhead, Victoria initiated the lease extension process just as her lease was coming close to the all-important 80-year mark. The transaction was concluded in July 2007. The freeholder’s costs were kept to an absolute minimum.
Last month we were contacted by Mr and Mrs. W Simon , who acquired a one bedroom apartment in Hindhead in April 1998. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar residencies in Hindhead with an extended lease were worth £245,000. The mid-range ground rent payable was £50 billed annually. The lease concluded on 3 February 2094. Given that there were 68 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
Last year we were phoned by Dr V González , who owned a ground floor apartment in Hindhead in August 2003. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Similar premises in Hindhead with a long lease were valued about £285,000. The average amount of ground rent was £55 billed every twelve months. The lease lapsed in 2105. Considering the 79 years unexpired we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.