Hurworth leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Hurworth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Hurworth you would be well advised to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Hurworth with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Virgin | |
| Yorkshire Building Society |
Using our service gives you enhanced control over the value of your Hurworth leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Isaac, started to get close to the eighty-year threshold with the lease on his garden apartment in Hurworth. Having bought his property two decades ago, the length of the lease was of no bearing. Luckily, he noticed he needed to take steps soon on a lease extension. Isaac extended the lease at the eleventh hour last January. Isaac and the landlord subsequently agreed on an amount of £5,000 . If the lease had slipped lower than eighty years, the premium would have escalated by at least £1,050.
Ms D Mercier was assigned a lease of a garden apartment in Hurworth in June 2012. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable homes in Hurworth with a long lease were worth £265,000. The mid-range ground rent payable was £55 collected annually. The lease ended in 2100. Having 74 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
In 2013 we were contacted by Dr Y Moreau who, having owned a studio apartment in Hurworth in October 2005. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable homes in Hurworth with 100 year plus lease were worth £166,400. The average amount of ground rent was £60 invoiced yearly. The lease ran out in 2080. Given that there were 54 years left we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus expenses.