The market value of a leasehold property in Hoole is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that all matters can be concluded prior to the 80 year cut off point. Statute enables Hoole qualifying lessees to an additional term of ninety years over and above the existing term, at a nominal rent (no ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Hoole lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing lengthy correspondence with the landlord of her first floor flat in Hoole, Katie started the lease extension process as the eighty year mark was quickly advancing. The transaction was finalised in January 2008. The landlord’s charges were kept to an absolute minimum.
In 2012 we were e-mailed by Mr L Young who, having owned a one bedroom flat in Hoole in July 2006. The question was if we could approximate the price could be for a ninety year extension to my lease. Identical homes in Hoole with 100 year plus lease were valued about £225,800. The average ground rent payable was £60 collected quarterly. The lease termination date was in 2086. Considering the 60 years left we estimated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 plus legals.
Ms Tia Martin completed a garden flat in Hoole in November 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Similar homes in Hoole with an extended lease were worth £210,000. The mid-range ground rent payable was £50 invoiced per annum. The lease finished in 2106. Given that there were 80 years left we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.