Hermitage leases on residential properties are gradually losing value. Where your lease has approximately ninety years remaining, 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 begin paying an additional element called marriage value. Leasehold owners in Hermitage will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain cases you may not be entitled. There are also strict deadlines and formalities to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Hermitage with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| National Westminster Bank | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Hermitage,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hermitage valuers.
Off the back of lengthy negotiations with the landlord of her basement apartment in Hermitage, Alicia initiated the lease extension process just as her lease was approaching the crucial 80-year threshold. The lease extension was finalised in July 2013. The freeholder’s fees were negotiated to less than 450 GBP.
In 2014 we were contacted by Mr and Mrs. H Morel who, having owned a basement apartment in Hermitage in July 2011. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparable homes in Hermitage with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 billed annually. The lease termination date was on 20 October 2100. Given that there were 74 years outstanding we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.
Mr Evan Watson took over the lease of a one bedroom apartment in Hermitage in March 2005. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Identical flats in Hermitage with an extended lease were worth £243,000. The average ground rent payable was £65 billed every twelve months. The lease terminated in 2089. Considering the 63 years as a residual term we estimated the premium to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of professional charges.