With a residential leasehold property in Hagley, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably when there are less than 80 years remaining. Leasehold owners in Hagley with a lease approaching 81 years unexpired should seriously think of extending it without delay. When a lease has less than eighty years left, under the relevant legislation the freeholder can calculate and charge a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Hagley can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in lease extensions.
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 a wealth of experience procuring Hagley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted correspondence with the freeholder of her purpose-built flat in Hagley, Lauren initiated the lease extension process as the eighty year threshold was rapidly advancing. The legal work completed in August 2010. The landlord’s charges were negotiated to below 550 GBP.
In 2010 we were phoned by Mr and Mrs. M Bernard who, having acquired a one bedroom flat in Hagley in February 2011. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Similar flats in Hagley with an extended lease were valued around £245,000. The average amount of ground rent was £45 billed monthly. The lease finished on 5 March 2094. Considering the 68 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
Last Christmas we were e-mailed by Dr I Mason , who owned a garden apartment in Hagley in August 2004. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Hagley with a long lease were valued around £280,000. The average amount of ground rent was £55 collected every twelve months. The lease came to a finish on 15 March 2105. Having 79 years remaining we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including fees.