Hanslope 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 becomes more expensive. Most owners of residential leasehold property in Hanslope enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Hanslope you would be well advised to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Using our service will provide you enhanced control over the value of your Hanslope leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the landlord of her one bedroom flat in Hanslope, Olivia initiated the lease extension process just as the lease was nearing the critical 80-year deadline. The transaction was concluded in November 2014. The landlord’s fees were restricted to slightly above 650 GBP.
Mr I Dupont completed a one bedroom apartment in Hanslope in September 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical flats in Hanslope with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £45 collected per annum. The lease elapsed on 15 August 2095. Taking into account 69 years unexpired we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.
Mrs C Green was assigned a lease of a one bedroom flat in Hanslope in January 2006. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Comparable premises in Hanslope with an extended lease were worth £216,000. The mid-range amount of ground rent was £60 collected yearly. The lease finished on 7 March 2084. Taking into account 58 years remaining we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.