There is no doubt about it a leasehold property in Hinton St George is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 100 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Hinton St George will qualify for this right; that being said a lawyer will be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Hinton St George with over 100 years unexpired 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Hinton St George 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 lawyer we work with provide it.
Last October Dylan, started to get near to the 80-year mark with the lease on his studio flat in Hinton St George. In buying his flat twenty years ago, the length of the lease was of little relevance. Luckily, he recognised he needed to take action soon on a lease extension. Dylan was able to extend his lease just ahead of time in May. Dylan and the landlord eventually settled on a premium of £5,500 . If the lease had fallen to less than eighty years, the sum would have gone up by at least £875.
Dr D Díaz acquired a newly refurbished apartment in Hinton St George in February 2011. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Hinton St George with a long lease were valued around £208,600. The average ground rent payable was £60 billed annually. The lease terminated in 2082. Taking into account 57 years outstanding we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including professional charges.
Mr Hugo Wright acquired a ground floor flat in Hinton St George in June 2007. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Similar residencies in Hinton St George with a long lease were worth £200,000. The mid-range ground rent payable was £50 invoiced yearly. The lease expired in 2102. Taking into account 77 years as a residual term we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.