Hotwells residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Royal Bank of Scotland |
Lease extensions in Hotwells can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Hotwells lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ryan owned a high value flat in Hotwells on the market with a lease of just over sixty years unexpired. Ryan informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2013 we were e-mailed by Mr and Mrs. W Sánchez who, having bought a one bedroom apartment in Hotwells in June 2002. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Comparable premises in Hotwells with 100 year plus lease were in the region of £240,600. The average ground rent payable was £60 invoiced yearly. The lease ran out in 2088. Considering the 62 years unexpired we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus professional charges.
Dr Kian Ramírez completed a studio apartment in Hotwells in March 2010. We are asked if we could approximate the price would be to prolong the lease by an additional years. Similar properties in Hotwells with a long lease were in the region of £174,200. The mid-range ground rent payable was £55 invoiced annually. The lease expired in 2077. Given that there were 51 years unexpired we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including professional charges.