The re-sale value of a leasehold property in Hockley Heath is impacted by how long the lease has left to run. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be concluded prior to the eighty year mark. Leasehold Reform legislation enables Hockley Heath qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of 90 years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Hockley Heath with in excess of 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 premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 lawyer we work with provide it.
After protracted discussions with the landlord of her two bedroom flat in Hockley Heath, Amber started the lease extension process just as the lease was nearing the crucial eighty-year deadline. The legal work completed in June 2005. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were e-mailed by Mr and Mrs. B Kelly , who bought a first floor flat in Hockley Heath in July 2001. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable homes in Hockley Heath with an extended lease were valued around £285,000. The mid-range ground rent payable was £55 invoiced yearly. The lease elapsed on 7 May 2105. Considering the 79 years remaining we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.
In 2010 we were phoned by Mr Liam Morris who, having took over the lease of a basement flat in Hockley Heath in March 2004. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparative premises in Hockley Heath with a long lease were valued around £193,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease expired in 2085. Having 59 years left we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including costs.