The re-sale value of a leasehold property in Hessle is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be addressed ahead of the 80 year cut off point. Current legislation entitles Hessle qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Hessle,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hessle valuers.
Seth owned a conversion apartment in Hessle being marketed with a lease of a few days over 61 years unexpired. Seth informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Seth to invoke his statutory right. Seth obtained expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last Summer we were phoned by Mr T Davies , who took over the lease of a basement flat in Hessle in July 1997. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Identical homes in Hessle with an extended lease were in the region of £191,400. The average ground rent payable was £55 collected annually. The lease ran out in 2080. Given that there were 54 years left we estimated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 not including expenses.
Dr C Jackson was assigned a lease of a newly refurbished apartment in Hessle in May 2007. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Similar properties in Hessle with an extended lease were in the region of £295,000. The average amount of ground rent was £45 collected yearly. The lease came to a finish in 2100. Having 74 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.