It’s a harsh truth that a Hove residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Hove property prices.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Hove will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Hove,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hove valuers.
Following protracted correspondence with the landlord of her purpose-built flat in Hove, Alicia started the lease extension process as the 80 year deadline was quickly approaching. The lease extension was finalised in July 2007. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. L Garcia moved into a first floor flat in Hove in August 1996. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparative flats in Hove with a long lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease finished on 4 November 2100. Having 75 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Mr Ali Martin took over the lease of a one bedroom apartment in Hove in July 1996. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Similar flats in Hove with an extended lease were valued around £250,400. The mid-range ground rent payable was £65 billed quarterly. The lease concluded in 2089. Having 64 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 plus costs.