Hockley Heath leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease falls below 80 years - otherwise a higher amount will be payable. Leasehold owners in Hockley Heath will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In some circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Hockley Heath leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Luke was the the leasehold owner of a high value apartment in Hockley Heath being marketed with a lease of a few days over 72 years outstanding. Luke on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Luke to exercise his statutory right. Luke obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last year we were e-mailed by Mr and Mrs. M Vincent , who bought a studio apartment in Hockley Heath in April 2000. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparable premises in Hockley Heath with an extended lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease expiry date was in 2076. Having 50 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of expenses.
Last Winter we were approach by Mrs U Bell , who took over the lease of a purpose-built apartment in Hockley Heath in October 1997. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar homes in Hockley Heath with an extended lease were in the region of £208,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease expiry date was in 2087. Taking into account 61 years unexpired we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including costs.