Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Hawkshead. Inevitably, the length of lease left reduces over time. This may slip by relatively unnoticed when the residence has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Hawkshead have the right to extend the lease for a further 90 years under legislation. You should give careful consideration before putting off your Hawkshead lease extension. Holding off the cost now simply increases the price you will eventually have to pay to extend your lease
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Using our service gives you better control over the value of your Hawkshead leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jasper was the the leasehold proprietor of a conversion apartment in Hawkshead on the market with a lease of fraction over 72 years unexpired. Jasper informally spoke with 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 extend the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Dr L Lefèvre completed a first floor apartment in Hawkshead in November 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparable homes in Hawkshead with a long lease were worth £176,200. The average amount of ground rent was £65 billed yearly. The lease ended on 17 April 2082. Given that there were 56 years unexpired we estimated the premium to the landlord for the lease extension to be within £29,500 and £34,000 not including legals.
In 2009 we were called by Mr and Mrs. T David who, having acquired a first floor flat in Hawkshead in May 2000. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Hawkshead with 100 year plus lease were in the region of £242,600. The average amount of ground rent was £45 billed every twelve months. The lease ran out on 2 June 2093. Given that there were 67 years unexpired we approximated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of expenses.