Hartlepool leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Hartlepool will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and steps to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Hartlepool with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Using our service gives you increased control over the value of your Hartlepool leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oscar owned a 2 bedroom flat in Hartlepool on the market with a lease of a little over 72 years outstanding. Oscar informally spoke with his freeholder a well known London-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 Oscar to exercise his statutory right. Oscar obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2009 we were phoned by Dr O Hill who, having was assigned a lease of a basement apartment in Hartlepool in October 2004. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Comparative homes in Hartlepool with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 collected per annum. The lease elapsed in 2082. Given that there were 58 years unexpired we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including professional charges.
In 2014 we were approached by Mr and Mrs. T Gunderson who, having completed a garden apartment in Hartlepool in June 2010. The question was if we could approximate the premium would be to prolong the lease by ninety years. Similar premises in Hartlepool with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed monthly. The lease finished on 20 October 2102. Considering the 78 years outstanding we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.