It’s a harsh certainty that a Hoole residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Hoole property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining falls under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Hoole will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in Hoole with over 100 years remaining on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors 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.
Following lengthy correspondence with the freeholder of her first floor flat in Hoole, Georgia commenced the lease extension process just as the lease was approaching the all-important eighty-year deadline. The lease extension was concluded in August 2012. The landlord’s costs were restricted to below six hundred GBP.
In 2014 we were approached by Mr and Mrs. U Sánchez who, having bought a purpose-built apartment in Hoole in March 1998. The question was if we could estimate the premium would be for a 90 year extension to my lease. Similar flats in Hoole with 100 year plus lease were in the region of £257,800. The average ground rent payable was £65 invoiced every twelve months. The lease terminated on 8 October 2091. Given that there were 65 years unexpired we estimated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus expenses.
Mr and Mrs. L Bennett was assigned a lease of a recently refurbished flat in Hoole in September 1997. The question was if we could approximate the price would likely be for a ninety year lease extension. Identical premises in Hoole with a long lease were worth £191,400. The mid-range ground rent payable was £55 billed quarterly. The lease finished in 2080. Considering the 54 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 not including fees.