Hotwells leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease drops lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Hotwells will mostly qualify for a lease extension; however a solicitor will check your eligibility. In certain cases you may not qualify. There are prescribed timetables and steps to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with handle Hotwells 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 conveyancer we work with provide it.
In recent months Theo, came perilously close to the 80-year threshold with the lease on his first floor apartment in Hotwells. In buying his flat 19 years ago, the length of the lease was of minimal interest. Luckily, he became aware that he needed to take steps soon on Extending the lease. Theo arranged for a lease extension at the eleventh hour in July. Theo and the landlord in the end settled on an amount of £6,000 . If he not met the deadline, the premium would have gone up by a minimum £875.
In 2013 we were approached by Mr and Mrs. O Miller who, having acquired a ground floor flat in Hotwells in May 1998. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative properties in Hotwells with a long lease were worth £166,800. The average ground rent payable was £50 billed annually. The lease came to a finish in 2076. Having 50 years left we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus legals.
Last Spring we were contacted by Mr and Mrs. W Leroy , who bought a purpose-built flat in Hotwells in September 2012. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Hotwells with a long lease were worth £280,000. The average ground rent payable was £45 billed every twelve months. The lease expired on 16 February 2096. Taking into account 70 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.