On the balance of probabilities where you own a flat in Hingham you actually own a long leasehold interest over your property
Leasehold residencies in Hingham with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Hingham 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.
After protracted correspondence with the landlord of her garden flat in Hingham, Isobel commenced the lease extension process just as her lease was nearing the crucial eighty-year mark. The legal work completed in November 2011. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were contacted by Mr and Mrs. B Thomas who, having took over the lease of a one bedroom flat in Hingham in October 2003. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable residencies in Hingham with an extended lease were in the region of £200,800. The average ground rent payable was £65 billed annually. The lease came to a finish in 2086. Considering the 60 years left we approximated the premium to the landlord for the lease extension to be between £20,900 and £24,200 not including costs.
Last Autumn we were phoned by Mr George Ali , who owned a garden flat in Hingham in March 1998. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparable residencies in Hingham with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease end date was on 23 May 2097. Given that there were 71 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.