The value of Hackenthorpe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the unexpired lease term is less than 80 years
Leasehold premises in Hackenthorpe with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant 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. |
| Coventry Building Society | 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. |
| 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 Hackenthorpe 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 lawyer we work with provide it.
Trailing protracted discussions with the landlord of her one bedroom flat in Hackenthorpe, Charlotte initiated the lease extension process as the 80 year deadline was swiftly nearing. The legal work was finalised in May 2008. The freeholder’s fees were kept to an absolute minimum.
Dr Morgan Stewart acquired a basement apartment in Hackenthorpe in May 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Identical premises in Hackenthorpe with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 collected every twelve months. The lease lapsed in 2106. Given that there were 80 years remaining we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.
In 2014 we were contacted by Ms Isabella Turner who, having completed a garden apartment in Hackenthorpe in August 1998. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparative flats in Hackenthorpe with an extended lease were worth £200,800. The mid-range ground rent payable was £65 collected monthly. The lease ended in 2086. Considering the 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 plus costs.