As the the remaining lease term of a Hindhead domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, over 100 years remaining then this decrease may be negligible however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. Many flat owners in Hindhead will qualify for this right; that being said a conveyancing solicitor will be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Hindhead with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Retaining our service gives you enhanced control over the value of your Hindhead leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jason owned a conversion apartment in Hindhead being sold with a lease of a few days over 72 years remaining. Jason informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Jason to invoke his statutory right. Jason obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2012 we were e-mailed by Mr and Mrs. R Lewis who, having acquired a newly refurbished flat in Hindhead in November 2012. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable premises in Hindhead with a long lease were worth £208,200. The average ground rent payable was £65 collected yearly. The lease expired on 16 February 2087. Given that there were 61 years left we calculated the premium to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of professional charges.
In 2009 we were contacted by Ms M Gómez who, having purchased a basement flat in Hindhead in November 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Identical flats in Hindhead with an extended lease were valued about £260,000. The mid-range amount of ground rent was £50 collected monthly. The lease ended in 2098. Given that there were 72 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.