It’s a harsh truth that a Hoole residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Hoole property market.Where your lease has approximately 90 years left, you should start considering 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 falls below 80 years - otherwise a higher amount will be payable. Most leasehold owners in Hoole will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
It is generally accepted that a residential leasehold with more than 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 residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Virgin |
The lawyers that we work with procure 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.
Freddie was the the leasehold proprietor of a studio flat in Hoole on the market with a lease of just over 61 years left. Freddie on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Freddie to invoke his statutory right. Freddie procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Mr S Young owned a one bedroom apartment in Hoole in January 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparative homes in Hoole with an extended lease were in the region of £191,400. The mid-range ground rent payable was £55 collected annually. The lease lapsed in 2080. Given that there were 54 years unexpired we approximated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of expenses.
Dr N Martin moved into a recently refurbished flat in Hoole in February 2006. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Comparative homes in Hoole with an extended lease were valued about £295,000. The average amount of ground rent was £45 invoiced per annum. The lease ended in 2100. Taking into account 74 years left we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.