Hessle leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Hessle residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Hessle you should investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Hessle can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Hessle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alexander owned a conversion apartment in Hessle being marketed with a lease of a little over 61 years unexpired. Alexander informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alexander to invoke his statutory right. Alexander obtained expert advice and secured an acceptable resolution informally and sell the property.
Mrs Gemma Johnson purchased a one bedroom flat in Hessle in November 2011. The question was if we could approximate the premium would be to prolong the lease by an additional years. Identical residencies in Hessle with an extended lease were worth £216,000. The mid-range ground rent payable was £60 billed yearly. The lease concluded on 2 April 2084. Having 58 years left we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.
Mr Theo Evans owned a basement flat in Hessle in May 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Identical homes in Hessle with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 billed monthly. The lease elapsed on 28 August 2104. Having 78 years unexpired we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.