Hermitage leases on residential deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Hermitage will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Coventry Building Society | |
| National Westminster Bank | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with undertake Hermitage 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 conveyancer we work with provide it.
Matthew owned a conversion apartment in Hermitage on the market with a lease of a little over 72 years outstanding. Matthew informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Matthew to exercise his statutory right. Matthew procured expert advice and secured satisfactory resolution informally and sell the property.
Dr Omar Walker bought a one bedroom apartment in Hermitage in April 2002. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparable premises in Hermitage with a long lease were worth £174,200. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded in 2077. Given that there were 51 years unexpired we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus expenses.
In 2014 we were phoned by Mr and Mrs. A David who, having bought a purpose-built apartment in Hermitage in November 1997. The question was if we could estimate the premium could be for a ninety year extension to my lease. Identical homes in Hermitage with a long lease were worth £285,000. The average amount of ground rent was £45 billed every twelve months. The lease lapsed in 2097. Taking into account 71 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.