With a long leasehold premises in Hartlepool, you are actually purchasing a right 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 long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years left. Residents in Hartlepool with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. Once the lease term has below 80 years outstanding, under the relevant legislation the freeholder is entitled to calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hartlepool can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in this area.
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 dealing with Hartlepool lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Max, came seriously close to the 80-year threshold with the lease on his two bedroom apartment in Hartlepool. Having purchased his flat twenty years ago, the lease term was of no relevance. As luck would have it, he became aware that he would imminently be paying way over the odds for a lease extension. Max extended the lease just under the wire last April. Max and the landlord who owned the flat above eventually settled on an amount of £5,000 . If the lease had fallen to less than eighty years, the figure would have gone up by a minimum £900.
Mrs D Parker completed a purpose-built flat in Hartlepool in September 2012. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparable homes in Hartlepool with 100 year plus lease were in the region of £223,400. The average ground rent payable was £60 collected per annum. The lease expired in 2084. Taking into account 59 years remaining we approximated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 not including fees.
Dr William Ricardo acquired a recently refurbished apartment in Hartlepool in April 2001. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Similar properties in Hartlepool with an extended lease were valued around £205,000. The average amount of ground rent was £50 collected yearly. The lease elapsed on 13 June 2104. Taking into account 79 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.