When it comes to long leasehold property in Hinton St George, you are actually buying an entitlement to live in a property for a set period of time. 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 consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years left. Residents in Hinton St George with a lease approaching 81 years remaining should seriously consider extending it sooner than later. When the lease term has under 80 years left, under the current statute the freeholder is entitled to calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Hinton St George,the lease extension solicitors 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 Hinton St George valuers.
Mason was the the leasehold owner of a high value apartment in Hinton St George being sold with a lease of just over sixty years outstanding. Mason informally contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Mason to exercise his statutory right. Mason obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Christmas we were e-mailed by Mr and Mrs. E Lefèvre , who was assigned a lease of a newly refurbished flat in Hinton St George in July 2009. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar flats in Hinton St George with an extended lease were worth £260,200. The average amount of ground rent was £65 billed per annum. The lease concluded on 27 May 2092. Considering the 66 years unexpired we calculated the premium to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of expenses.
Mr and Mrs. J Petit owned a basement apartment in Hinton St George in February 2006. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar residencies in Hinton St George with a long lease were in the region of £198,800. The mid-range ground rent payable was £55 invoiced monthly. The lease concluded on 11 February 2081. Having 55 years outstanding we approximated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 not including professional charges.