There is no doubt about it a leasehold property in Hyde Park is a wasting asset as a result of the shortening lease. If the lease has, in excess of 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Many flat owners in Hyde Park will qualify for this right; nevertheless a lawyer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Hyde Park leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jason owned a studio apartment in Hyde Park being marketed with a lease of just over 72 years unexpired. Jason informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jason to invoke his statutory right. Jason procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last month we were contacted by Dr Muhammad Torres , who completed a ground floor flat in Hyde Park in November 1999. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Identical residencies in Hyde Park with a long lease were valued about £183,600. The mid-range ground rent payable was £65 invoiced annually. The lease elapsed in 2082. Having 57 years as a residual term we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.
Mrs I Khan took over the lease of a purpose-built flat in Hyde Park in October 2002. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Identical residencies in Hyde Park with a long lease were valued about £250,000. The average amount of ground rent was £50 billed every twelve months. The lease concluded on 2 June 2093. Given that there were 68 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.