Hythe leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Hythe will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain circumstances you may not qualify. There are also strict deadlines and formalities to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Hythe with over one hundred years outstanding on the lease are often 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 freehold unless savings on ground rent and service charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with undertake Hythe 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.
Leon owned a high value flat in Hythe on the market with a lease of a little over sixty years left. Leon on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Leon to invoke his statutory right. Leon procured expert legal guidance and secured an acceptable resolution informally and sell the property.
Last Winter we were called by Ms B Girard , who owned a first floor apartment in Hythe in January 2010. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Similar residencies in Hythe with a long lease were worth £184,000. The mid-range amount of ground rent was £55 billed annually. The lease came to a finish on 19 August 2079. Considering the 53 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of expenses.
Mr and Mrs. D Phillips purchased a one bedroom flat in Hythe in March 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Similar homes in Hythe with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 collected monthly. The lease came to a finish on 15 April 2099. Considering the 73 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.