As the length of the unexpired term of a Hoole domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, more than 125 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. Many flat owners in Hoole will meet the qualifying criteria; however a conveyancer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the same 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Hoole leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the landlord of her studio apartment in Hoole, Caitlin started the lease extension process just as the lease was nearing the critical 80-year threshold. The lease extension was concluded in April 2009. The landlord’s costs were kept to an absolute minimum.
Last Christmas we were called by Mrs Leah Thomas , who acquired a first floor flat in Hoole in August 2011. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable residencies in Hoole with an extended lease were valued around £300,000. The mid-range ground rent payable was £50 billed per annum. The lease came to a finish on 13 March 2102. Considering the 76 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.
In 2014 we were called by Mr and Mrs. V Kelly who, having owned a basement apartment in Hoole in August 2006. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical homes in Hoole with a long lease were valued about £257,800. The average ground rent payable was £65 billed per annum. The lease lapsed on 8 June 2091. Considering the 65 years outstanding we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including costs.