When it comes to residential leasehold premises in Hindhead, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Anyone in Hindhead with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has under 80 years remaining, under the relevant legislation the freeholder is entitled to calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
The conveyancers that we work with procure Hindhead lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Following protracted discussions with the landlord of her basement flat in Hindhead, Caitlin commenced the lease extension process just as the lease was approaching the crucial 80-year threshold. The legal work completed in June 2005. The landlord’s costs were kept to an absolute minimum.
Last Summer we were e-mailed by Mr and Mrs. W Gray , who purchased a ground floor apartment in Hindhead in November 2009. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable flats in Hindhead with an extended lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced annually. The lease came to a finish on 28 October 2097. Considering the 71 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Last Summer we were contacted by Dr Joshua Fournier , who moved into a one bedroom flat in Hindhead in May 2002. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative properties in Hindhead with 100 year plus lease were worth £254,200. The average ground rent payable was £60 collected per annum. The lease finished in 2077. Taking into account 51 years unexpired we approximated the premium to the landlord for the lease extension to be within £43,700 and £50,600 not including expenses.