Hackenthorpe leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Hackenthorpe will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Using our service will provide you enhanced control over the value of your Hackenthorpe leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Jackson, started to get near to the 80-year threshold with the lease on his basement flat in Hackenthorpe. In buying his property 19 years previously, the length of the lease was of no concern. Fortunately, he realised he needed to take steps soon on a lease extension. Jackson arranged for a lease extension just ahead of time last May. Jackson and the landlord subsequently settled on sum of £5,500 . If the lease had slid below eighty years, the price would have escalated by at least £925.
Last Christmas we were approach by Mr and Mrs. V Ricardo , who bought a ground floor flat in Hackenthorpe in October 2001. The question was if we could approximate the price would be for a ninety year lease extension. Identical premises in Hackenthorpe with an extended lease were in the region of £218,000. The average amount of ground rent was £45 invoiced per annum. The lease elapsed in 2088. Given that there were 63 years remaining we approximated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of professional charges.
In 2013 we were called by Mrs Jordan Gray who, having took over the lease of a garden flat in Hackenthorpe in September 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Identical flats in Hackenthorpe with a long lease were in the region of £265,000. The average ground rent payable was £55 collected monthly. The lease ended on 19 July 2099. Taking into account 74 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.