Hoole leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Hoole enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Hoole you should investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Hoole with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Hoole,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hoole valuers.
Half a year ago Jude, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Hoole. In buying his flat two decades ago, the length of the lease was of little interest. Luckily, he became aware that he would imminently be paying way over the odds for a lease extension. Jude extended the lease at the eleventh hour in June. Jude and the freeholder ultimately settled on the final figure of £5,000 . If the lease had descended below 80 years, the premium would have gone up by a minimum £1,125.
Last Christmas we were contacted by Mr and Mrs. S Sánchez , who was assigned a lease of a purpose-built apartment in Hoole in November 2003. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable residencies in Hoole with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 collected per annum. The lease finished in 2098. Having 72 years outstanding we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.
Mr and Mrs. V Brown took over the lease of a purpose-built apartment in Hoole in June 2001. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical flats in Hoole with a long lease were worth £233,200. The mid-range amount of ground rent was £60 collected quarterly. The lease ended on 17 October 2087. Considering the 61 years left we calculated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 not including fees.