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 one hundred years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under 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 logic behind why you should extend the lease sooner than later. The majority of flat owners in Hoole will meet the qualifying criteria; however a conveyancer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle 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 conveyancer we work with provide it.
Henry was the the leasehold owner of a 2 bedroom flat in Hoole on the market with a lease of a little over fifty eight years remaining. Henry informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Henry to invoke his statutory right. Henry obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
In 2010 we were called by Dr Finn Morel who, having acquired a one bedroom flat in Hoole in June 2010. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparative premises in Hoole with a long lease were valued around £233,200. The mid-range amount of ground rent was £60 invoiced annually. The lease lapsed on 12 July 2087. Given that there were 61 years left we calculated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of professional charges.
In 2009 we were phoned by Mr and Mrs. M Edwards who, having completed a studio flat in Hoole in July 2010. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparable flats in Hoole with a long lease were in the region of £171,800. The mid-range ground rent payable was £55 invoiced yearly. The lease ran out on 11 June 2076. Given that there were 50 years outstanding we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus legals.