Unfortunately that a Hyde residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Hyde property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining falls under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Hyde will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Hyde with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with procure Hyde 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 conveyancing solicitor we work with provide it.
Twenty four months ago Jack, started to get near to the 80-year threshold with the lease on his purpose- built flat in Hyde. In buying his property 19 years ago, the lease term was of minimal interest. As luck would have it, he became aware that he would soon be paying an inflated amount for Extending the lease. Jack extended the lease just under the wire last July. Jack and the freeholder via the managing agents in the end settled on sum of £5,500 . If the lease had dipped lower than 80 years, the sum would have escalated by a minimum £1,100.
Dr Theo Martin was assigned a lease of a ground floor flat in Hyde in April 2005. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Identical properties in Hyde with an extended lease were valued about £201,200. The average amount of ground rent was £55 invoiced every twelve months. The lease expired in 2082. Having 56 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus expenses.
In 2014 we were called by Mr and Mrs. L Campbell who, having acquired a recently refurbished flat in Hyde in August 2012. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparable homes in Hyde with an extended lease were worth £300,000. The average amount of ground rent was £50 invoiced per annum. The lease expired in 2102. Taking into account 76 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.