When it comes to residential leasehold premises in Hythe, you are actually buying a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years left. Anyone in Hythe with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once a lease has under eighty years left, under the current legislation the freeholder is entitled to calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Lease extensions in Hythe can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Hythe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy correspondence with the freeholder of her first floor flat in Hythe, Georgia commenced the lease extension process just as her lease was coming close to the crucial 80-year mark. The legal work was concluded in May 2006. The freeholder’s charges were negotiated to slightly above 550 GBP.
Dr O François purchased a studio flat in Hythe in March 2011. The question was if we could estimate the premium would likely be for a ninety year lease extension. Similar flats in Hythe with a long lease were valued about £285,000. The average amount of ground rent was £45 invoiced annually. The lease terminated on 27 June 2098. Considering the 72 years remaining we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.
Dr P Richardson acquired a studio apartment in Hythe in March 1997. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Similar flats in Hythe with a long lease were in the region of £233,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease expired on 22 January 2087. Given that there were 61 years outstanding we approximated the premium to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of expenses.