The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Hawkshead may extend the lease for an additional ninety years under statute. Please give careful consideration before delaying your Hawkshead lease extension. Shelving that expense now simply increases the amount you will eventually have to pay for a lease extension.
Leasehold residencies in Hawkshead with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The lawyers that we work with undertake Hawkshead lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Blake owned a conversion flat in Hawkshead on the market with a lease of a little over 59 years left. Blake on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Blake to exercise his statutory right. Blake obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Summer we were contacted by Mr and Mrs. J Baker , who bought a ground floor flat in Hawkshead in March 2000. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative homes in Hawkshead with a long lease were in the region of £191,000. The mid-range amount of ground rent was £65 billed annually. The lease expired in 2083. Having 58 years remaining we estimated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 exclusive of costs.
Ms I Parker was assigned a lease of a basement flat in Hawkshead in May 1995. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative residencies in Hawkshead with 100 year plus lease were valued around £250,000. The mid-range amount of ground rent was £50 collected yearly. The lease ended in 2094. Given that there were 69 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.