The market value of a leasehold property in Hessle depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be addressed ahead of the eighty year cut off point. Statute entitles Hessle qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Hessle leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the landlord of her ground floor apartment in Hessle, Ella commenced the lease extension process as the 80 year deadline was fast approaching. The legal work completed in September 2014. The landlord’s costs were negotiated to slightly above 600 GBP.
In 2012 we were contacted by Mr R Lambert who, having purchased a recently refurbished flat in Hessle in May 1998. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative homes in Hessle with a long lease were valued around £200,000. The average amount of ground rent was £50 billed monthly. The lease expired on 5 July 2103. Given that there were 77 years left we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.
In 2014 we were called by Mr Aiden Anderson who, having took over the lease of a studio apartment in Hessle in August 1996. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparative flats in Hessle with 100 year plus lease were in the region of £265,200. The mid-range ground rent payable was £65 invoiced per annum. The lease came to a finish on 7 August 2092. Taking into account 66 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 plus expenses.