The market value of Hessle leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the remaining term is less than eighty years
Leasehold residencies in Hessle with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Hessle,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hessle valuers.
Dexter owned a studio flat in Hessle being marketed with a lease of fraction over 61 years unexpired. Dexter informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Dexter to exercise his statutory right. Dexter procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.
Dr Logan Díaz took over the lease of a garden flat in Hessle in February 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar properties in Hessle with a long lease were worth £257,800. The average amount of ground rent was £65 invoiced quarterly. The lease ran out on 6 February 2091. Having 65 years outstanding we estimated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus fees.
In 2011 we were contacted by Mr A Campbell who, having purchased a newly refurbished flat in Hessle in January 1998. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical flats in Hessle with a long lease were worth £191,400. The average ground rent payable was £55 billed yearly. The lease terminated on 5 September 2080. Having 54 years as a residual term we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 plus expenses.