With a long leasehold property in Hartlepool, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Residents in Hartlepool with a lease approaching 81 years left should seriously consider extending it sooner than later. When a lease has under eighty years left, under the relevant statute the freeholder is entitled to calculate and demand a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises 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. |
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 Hartlepool can be a difficult process. We recommend you obtain 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 a wealth of experience dealing with Hartlepool lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Archie owned a 2 bedroom flat in Hartlepool being sold with a lease of fraction over sixty years unexpired. Archie on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Archie to invoke his statutory right. Archie procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2012 we were approached by Mr and Mrs. I Carter who, having moved into a studio flat in Hartlepool in June 1997. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative flats in Hartlepool with a long lease were in the region of £191,400. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ran out on 14 January 2079. Taking into account 54 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of legals.
In 2013 we were approached by Dr L Harris who, having completed a one bedroom flat in Hartlepool in June 2007. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Comparable residencies in Hartlepool with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced per annum. The lease terminated in 2099. Given that there were 74 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.