Hawkshead leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Hawkshead enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Hawkshead you must investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Hawkshead leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Hawkshead,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hawkshead valuers.
Milo owned a 2 bedroom apartment in Hawkshead on the market with a lease of just over 59 years unexpired. Milo informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms 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 payable on a lease extension were Milo to exercise his statutory right. Milo obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Winter we were phoned by Dr S Sánchez , who purchased a basement apartment in Hawkshead in February 2012. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable properties in Hawkshead with 100 year plus lease were valued about £275,000. The average amount of ground rent was £55 billed quarterly. The lease finished in 2102. Considering the 76 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
In 2014 we were contacted by Mr Connor Hernández who, having purchased a studio apartment in Hawkshead in February 2008. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Similar flats in Hawkshead with a long lease were valued around £176,200. The average amount of ground rent was £65 billed every twelve months. The lease lapsed on 14 August 2082. Having 56 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 not including expenses.