For anyone whose Hanslope property is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Hanslope,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 Hanslope valuers.
Subsequent to lengthy discussions with the landlord of her leasehold flat in Hanslope, Hollie started the lease extension process just as her lease was approaching the crucial 80-year mark. The legal work was finalised in February 2005. The freeholder’s charges were restricted to slightly above 450 pounds.
In 2014 we were approached by Mr Henry Simon who, having acquired a one bedroom apartment in Hanslope in November 2011. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable flats in Hanslope with an extended lease were valued around £285,000. The mid-range amount of ground rent was £45 collected monthly. The lease came to a finish in 2098. Given that there were 72 years outstanding we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.
Ms M Sharif acquired a purpose-built apartment in Hanslope in November 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparable residencies in Hanslope with an extended lease were worth £233,200. The average amount of ground rent was £60 billed every twelve months. The lease ran out on 2 February 2087. Considering the 61 years left we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 plus expenses.