Unfortunately that a Hartlepool residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Hartlepool property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term drops under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Hartlepool will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Hartlepool with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Hartlepool,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hartlepool valuers.
After unsuccessful discussions with the landlord of her leasehold apartment in Hartlepool, Alexandra commenced the lease extension process as the eighty year deadline was rapidly coming. The legal work completed in October 2009. The landlord’s charges were kept to an absolute minimum.
Dr Louise David completed a garden flat in Hartlepool in July 2008. The dilemma was if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar properties in Hartlepool with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 collected monthly. The lease expired in 2103. Taking into account 78 years remaining we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.
Mr and Mrs. G Phillips purchased a newly refurbished apartment in Hartlepool in February 2003. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparative properties in Hartlepool with an extended lease were in the region of £267,600. The average ground rent payable was £65 billed every twelve months. The lease ended in 2092. Considering the 67 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 not including fees.