There is no doubt about it a leasehold property in Hoole is a wasting asset as a result of the diminishing lease term. Where the lease has, more than one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Hoole will qualify for this right; that being said a conveyancer will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| 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. |
| Yorkshire 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. |
Lease extensions in Hoole can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Hoole lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Harrison, came critically close to the eighty-year mark with the lease on his garden flat in Hoole. In buying his home twenty years previously, the unexpired term was of little bearing. Luckily, he became aware that he needed to take steps soon on a lease extension. Harrison was able to extend his lease just in the nick of time in April. Harrison and the freeholder via the managing agents in the end agreed on a premium of £6,000 . If the lease had slipped to less than eighty years, the sum would have gone up by at least £1,000.
Last Autumn we were e-mailed by Dr Dylan Thompson , who bought a basement flat in Hoole in January 2001. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical flats in Hoole with an extended lease were valued around £181,600. The mid-range amount of ground rent was £55 billed per annum. The lease concluded on 10 August 2077. Taking into account 52 years left we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of expenses.
In 2014 we were called by Mr and Mrs. L Ricardo who, having completed a one bedroom flat in Hoole in November 2011. We are asked if we could estimate the premium could be for a 90 year lease extension. Identical residencies in Hoole with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 billed quarterly. The lease ended on 5 June 2097. Taking into account 72 years unexpired we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.