Unfortunately that a Hoole residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Hoole property market.Where your lease has approximately 90 years left, you should start thinking about 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 dips lower than eighty years - otherwise a higher premium will be payable. The majority of flat owners in Hoole will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Hoole,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hoole valuers.
Subsequent to protracted negotiations with the landlord of her leasehold flat in Hoole, Stephanie commenced the lease extension process just as the lease was coming close to the crucial eighty-year mark. The transaction completed in July 2008. The freeholder’s charges were kept to an absolute minimum.
Last year we were approach by Mr H Peterson , who completed a one bedroom apartment in Hoole in October 2005. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparative homes in Hoole with a long lease were valued about £205,000. The mid-range ground rent payable was £50 collected monthly. The lease lapsed on 1 August 2104. Having 79 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.
Mr and Mrs. Y James was assigned a lease of a one bedroom apartment in Hoole in October 2005. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparable residencies in Hoole with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £65 billed annually. The lease lapsed on 24 August 2093. Given that there were 68 years left we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.