It’s a harsh certainty that a Hingham residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Hingham property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term slips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Hingham will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold residencies in Hingham with over one hundred years left 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Leeds Building Society |
Irrespective of whether you are a tenant or a landlord in Hingham,the lease extension experts that we work with will always be willing 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.
16 months ago Seth, started to get near to the eighty-year threshold with the lease on his one bedroom apartment in Hingham. Having bought his flat 18 years previously, the lease term was of no concern. Fortunately, he recognised he would soon be paying way over the odds for a lease extension. Seth arranged for a lease extension just in the nick of time in January. Seth and the freeholder via the managing agents in the end agreed on sum of £5,000 . If he not met the deadline, the price would have increased by a minimum £1,100.
In 2011 we were approached by Dr Lewis Murphy who, having acquired a one bedroom flat in Hingham in March 2011. The dilemma was if we could estimate the price would likely be to prolong the lease by an additional years. Comparable premises in Hingham with 100 year plus lease were in the region of £168,800. The mid-range ground rent payable was £60 billed monthly. The lease finished in 2081. Taking into account 55 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus fees.
In 2012 we were phoned by Ms H Peterson who, having bought a garden flat in Hingham in August 2004. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar properties in Hingham with a long lease were in the region of £232,800. The average ground rent payable was £45 billed monthly. The lease finished in 2091. Taking into account 65 years unexpired we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.