For anyone whose Hawkshead home is held on a long lease, the message is clear – if no remedial action is taken, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension.
Leasehold residencies in Hawkshead with over 100 years unexpired 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Hawkshead,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hawkshead valuers.
In recent months Jason, started to get near to the 80-year threshold with the lease on his purpose- built flat in Hawkshead. In buying his flat 19 years ago, the lease term was of no relevance. Luckily, he became aware that he needed to take steps soon on Extending the lease. Jason arranged for a lease extension at the eleventh hour last May. Jason and the freeholder in the end settled on sum of £5,500 . If he had missed the deadline, the price would have increased by a minimum £1,025.
Mrs F Simon moved into a one bedroom flat in Hawkshead in July 2005. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable residencies in Hawkshead with a long lease were worth £225,400. The average ground rent payable was £45 collected annually. The lease concluded in 2090. Given that there were 64 years unexpired we approximated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 not including costs.
Last September we were approach by Mr Kyle Rogers , who acquired a basement apartment in Hawkshead in August 2010. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparative flats in Hawkshead with an extended lease were valued around £270,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease terminated in 2101. Taking into account 75 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.