The market value of a leasehold property in Hingham is impacted by how long the lease has left to run. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed well before the eighty year cut off point. Statute enables Hingham qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Hingham,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hingham valuers.
Blake was the the leasehold proprietor of a conversion flat in Hingham on the market with a lease of fraction over fifty eight years remaining. Blake on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Blake to invoke his statutory right. Blake procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Last Winter we were phoned by Dr B Bailey , who took over the lease of a purpose-built apartment in Hingham in July 1996. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative residencies in Hingham with a long lease were valued around £265,000. The mid-range amount of ground rent was £50 billed quarterly. The lease terminated on 13 May 2100. Considering the 74 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.
Dr Danielle Díaz completed a basement flat in Hingham in September 2006. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative homes in Hingham with a long lease were in the region of £264,000. The average ground rent payable was £60 billed quarterly. The lease termination date was on 14 February 2079. Considering the 53 years remaining we calculated the premium to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of fees.