Unfortunately that a Hawkshead residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Hawkshead property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be due. Most flat owners in Hawkshead will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom 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 any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hawkshead can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 Hawkshead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of unsuccessful correspondence with the landlord of her two bedroom flat in Hawkshead, Lily commenced the lease extension process as the 80 year threshold was rapidly coming. The lease extension was concluded in October 2008. The landlord’s fees were restricted to under 600 pounds.
Mr and Mrs. L Patel acquired a garden flat in Hawkshead in August 2009. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar residencies in Hawkshead with 100 year plus lease were in the region of £245,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease lapsed in 2094. Given that there were 68 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
In 2013 we were e-mailed by Dr Molly Rogers who, having moved into a ground floor flat in Hawkshead in August 1998. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical properties in Hawkshead with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £55 invoiced monthly. The lease expired in 2105. Considering the 79 years outstanding we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.