Hedon leases on residential properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the existing lease drops lower than 80 years - otherwise a higher amount will be payable. Flat owners in Hedon will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and steps to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Hedon can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Hedon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Ben, came seriously close to the eighty-year threshold with the lease on his one bedroom apartment in Hedon. Having purchased his property twenty years ago, the length of the lease was of no concern. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Ben arranged for a lease extension just in the nick of time last March. Ben and the landlord who owned the flat above eventually settled on sum of £5,500 . If the lease had descended below eighty years, the sum would have escalated by at least £1,125.
In 2009 we were contacted by Dr Jude Allen who, having moved into a first floor apartment in Hedon in July 2000. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparative homes in Hedon with an extended lease were valued about £257,800. The mid-range ground rent payable was £65 invoiced every twelve months. The lease lapsed in 2091. Given that there were 65 years remaining we estimated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.
Last Autumn we were phoned by Mr Nathaniel Hill , who owned a studio apartment in Hedon in May 2007. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar properties in Hedon with 100 year plus lease were in the region of £191,400. The average ground rent payable was £55 billed annually. The lease end date was in 2080. Given that there were 54 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of professional charges.