The only way is down when it comes to Hagley lease terms. Hagley leaseholds that have a residual term less than than 80 years will reduce in value at a rapid rate, and the cost of extending your lease will go up.
Leasehold properties in Hagley with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Hagley 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 conveyancer we work with provide it.
Subsequent to unsuccessful discussions with the freeholder of her ground floor apartment in Hagley, Jennifer started the lease extension process as the eighty year mark was fast approaching. The transaction completed in July 2010. The landlord’s charges were kept to an absolute minimum.
Last Winter we were called by Mrs O Pérez , who purchased a ground floor apartment in Hagley in April 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparative flats in Hagley with a long lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected quarterly. The lease ran out in 2079. Given that there were 54 years left we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 not including expenses.
Last Autumn we were approach by Mr W Roux , who bought a basement flat in Hagley in September 1996. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Identical flats in Hagley with a long lease were worth £227,800. The average amount of ground rent was £45 collected quarterly. The lease came to a finish in 2090. Considering the 65 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of costs.