Hanslope leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Hanslope 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 Hanslope you would be well advised to investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Hanslope flat owner with a lease having around 80 years left should take action to ensure that a lease extension is effected without delay
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
The lawyers that we work with procure Hanslope 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 lawyer we work with provide it.
Aarav owned a high value apartment in Hanslope on the market with a lease of just over fifty eight years outstanding. Aarav informally contacted his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were Aarav to invoke his statutory right. Aarav obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
In 2014 we were e-mailed by Ms Naomi Bailey who, having purchased a garden apartment in Hanslope in July 2000. We are asked if we could estimate the premium could be to extend the lease by an additional years. Similar properties in Hanslope with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease ran out in 2102. Considering the 76 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
Mrs M Flores was assigned a lease of a one bedroom flat in Hanslope in April 2010. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical properties in Hanslope with an extended lease were worth £257,800. The mid-range ground rent payable was £65 billed yearly. The lease ran out in 2091. Considering the 65 years remaining we approximated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 plus expenses.