On the balance of probabilities where you own a flat in Hartlepool you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Chelsea 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. |
| 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 undertake Hartlepool 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 conveyancer we work with provide it.
18 months ago Jude, started to get close to the eighty-year mark with the lease on his purpose- built flat in Hartlepool. Having purchased his flat 19 years previously, the unexpired term was of no interest. Fortunately, he became aware that he would soon be paying an inflated amount for a lease extension. Jude arranged for a lease extension just under the wire in April. Jude and the freeholder subsequently agreed on the final figure of £6,000 . If he failed to meet the deadline, the premium would have increased by at least £850.
In 2013 we were contacted by Dr S Alexander who, having owned a studio apartment in Hartlepool in July 2003. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Similar homes in Hartlepool with a long lease were in the region of £265,200. The mid-range amount of ground rent was £65 billed monthly. The lease concluded on 6 September 2091. Given that there were 66 years remaining we approximated the premium to the landlord for the lease extension to be within £15,200 and £17,600 plus expenses.
Dr Sophie García owned a one bedroom flat in Hartlepool in April 2005. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Identical premises in Hartlepool with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 collected quarterly. The lease concluded on 23 April 2080. Given that there were 55 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of professional charges.