Hermitage leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Hermitage residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Hermitage you should investigate if your lease has between 70 and ninety years left. There are good reasons why a Hermitage flat owner with a lease having around eighty years left should take action to ensure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service will provide you increased control over the value of your Hermitage leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy negotiations with the freeholder of her two bedroom flat in Hermitage, Kayleigh initiated the lease extension process as the 80 year mark was swiftly nearing. The transaction completed in August 2008. The freeholder’s charges were restricted to under five hundred GBP.
Mrs Isabella Wright moved into a purpose-built apartment in Hermitage in August 2001. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable residencies in Hermitage with 100 year plus lease were valued about £184,000. The mid-range ground rent payable was £55 collected quarterly. The lease expiry date was on 18 October 2078. Given that there were 53 years left we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of legals.
Ms N Dupont bought a studio flat in Hermitage in February 2008. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparative premises in Hermitage with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 billed monthly. The lease ended on 15 August 2098. Taking into account 73 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.