Hythe leases on domestic deteriorating in value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the current lease falls under eighty years - otherwise a higher amount will be due. Flat owners in Hythe will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Hythe with more than 100 years outstanding 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Hythe leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Finn, came precariously close to the 80-year threshold with the lease on his garden apartment in Hythe. In buying his flat two decades ago, the length of the lease was of little relevance. Thankfully, he became aware that he would soon be paying an escalated premium for a lease extension. Finn arranged for a lease extension just under the wire last May. Finn and the freeholder subsequently agreed on a premium of £5,500 . If he failed to meet the deadline, the amount would have increased by at least £1,025.
Last January we were e-mailed by Mr I Morel , who purchased a one bedroom apartment in Hythe in November 2010. We are asked if we could approximate the price could be to extend the lease by 90 years. Similar premises in Hythe with a long lease were valued about £225,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease end date was on 4 June 2085. Having 60 years outstanding we estimated the premium to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of professional charges.
In 2010 we were phoned by Mr Michael Evans who, having bought a ground floor flat in Hythe in February 1999. We are asked if we could estimate the price could be to extend the lease by ninety years. Similar residencies in Hythe with a long lease were worth £210,000. The mid-range ground rent payable was £50 collected monthly. The lease lapsed on 19 November 2105. Given that there were 80 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.