Hawkshead leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Hawkshead enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Hawkshead you must check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 |
| 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 will provide you increased control over the value of your Hawkshead leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Eliot was the the leasehold owner of a conversion apartment in Hawkshead being marketed with a lease of just over 59 years outstanding. Eliot on an informal basis approached his freeholder being a well known local-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 subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Eliot to exercise his statutory right. Eliot obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last Summer we were approach by Mrs W Smith , who bought a basement apartment in Hawkshead in November 2004. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Similar properties in Hawkshead with 100 year plus lease were valued around £260,000. The average amount of ground rent was £50 collected monthly. The lease ended in 2098. Taking into account 72 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
In 2013 we were called by Mr and Mrs. O David who, having acquired a purpose-built flat in Hawkshead in November 2003. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparative premises in Hawkshead with 100 year plus lease were in the region of £256,600. The average amount of ground rent was £60 collected every twelve months. The lease expiry date was on 1 March 2078. Taking into account 52 years outstanding we calculated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 plus fees.