Unfortunately that a Hoole residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Hoole property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term drops under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Hoole will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| 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. |
The conveyancing solicitors 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.
Gabriel owned a 2 bedroom apartment in Hoole on the market with a lease of fraction over 61 years remaining. Gabriel informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Mr and Mrs. P Moreau moved into a basement apartment in Hoole in August 2010. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar properties in Hoole with a long lease were valued about £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease elapsed in 2104. Considering the 78 years outstanding we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.
Last year we were phoned by Dr Bethan Patel , who completed a garden flat in Hoole in January 2001. The question was if we could approximate the premium could be for a 90 year lease extension. Similar properties in Hoole with 100 year plus lease were valued around £267,600. The average amount of ground rent was £65 collected per annum. The lease ran out on 27 February 2093. Given that there were 67 years unexpired we approximated the premium to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of fees.