It’s an underpublicised certainty that a Hockley Heath residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Hockley Heath property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be due. Most leasehold owners in Hockley Heath will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Hockley Heath with over 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Leeds Building Society | |
| National Westminster Bank | |
| TSB |
The conveyancers that we work with undertake Hockley Heath 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.
Nathaniel was the the leasehold proprietor of a high value apartment in Hockley Heath on the market with a lease of a few days over 59 years outstanding. Nathaniel on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert advice and secured satisfactory deal informally and sell the flat.
In 2013 we were called by Dr S David who, having completed a studio apartment in Hockley Heath in March 2006. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Similar homes in Hockley Heath with an extended lease were worth £210,600. The average ground rent payable was £45 billed quarterly. The lease concluded on 26 January 2088. Given that there were 62 years outstanding we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus professional charges.
In 2012 we were called by Mr K Moore who, having completed a newly refurbished apartment in Hockley Heath in May 2012. We are asked if we could estimate the price could be to prolong the lease by an additional years. Similar premises in Hockley Heath with a long lease were in the region of £265,000. The average amount of ground rent was £50 invoiced quarterly. The lease terminated on 15 February 2099. Having 73 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.