Hackenthorpe leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Hackenthorpe tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Hackenthorpe you really ought to see if your lease has between seventy and ninety years remaining. There are good reasons why a Hackenthorpe flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay
Leasehold premises in Hackenthorpe with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Irrespective of whether you are a tenant or a freeholder in Hackenthorpe,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hackenthorpe valuers.
Reuben owned a studio flat in Hackenthorpe on the market with a lease of fraction over fifty eight years remaining. Reuben on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Reuben to exercise his statutory right. Reuben procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Ms Erin Bernard was assigned a lease of a newly refurbished apartment in Hackenthorpe in October 2011. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative premises in Hackenthorpe with a long lease were worth £255,000. The average ground rent payable was £50 collected quarterly. The lease elapsed on 13 October 2096. Given that there were 70 years remaining we calculated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 not including professional charges.
In 2011 we were contacted by Mr and Mrs. V Nguyen who, having completed a purpose-built apartment in Hackenthorpe in June 1995. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical homes in Hackenthorpe with an extended lease were valued about £246,800. The average amount of ground rent was £60 billed yearly. The lease expired in 2076. Considering the 50 years outstanding we approximated the premium to the landlord to extend the lease to be between £44,700 and £51,600 plus professional charges.