The market value of a leasehold property in Hessle is impacted by how long the lease has left to run. If it is near to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that formalities can be addressed ahead of the 80 year threshold. Statute enables Hessle qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Hessle with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Hessle can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
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 dealing with Hessle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Liam was the the leasehold proprietor of a high value apartment in Hessle being sold with a lease of just over 61 years outstanding. Liam on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Liam to exercise his statutory right. Liam obtained expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2012 we were contacted by Mr M Taylor who, having moved into a basement flat in Hessle in November 2008. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Similar homes in Hessle with 100 year plus lease were in the region of £265,200. The mid-range ground rent payable was £65 collected quarterly. The lease expiry date was in 2092. Taking into account 66 years remaining we calculated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 not including costs.
Mrs S Lee owned a purpose-built apartment in Hessle in June 2005. The question was if we could estimate the price would be to prolong the lease by ninety years. Comparable residencies in Hessle with an extended lease were valued around £198,800. The mid-range ground rent payable was £55 collected monthly. The lease finished in 2081. Having 55 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of professional charges.