On the balance of probabilities where you own a flat in Hartlepool you actually own a long leasehold interest over your property
Leasehold premises in Hartlepool with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The lawyers that we work with procure 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.
Two years ago Logan, came perilously near to the 80-year mark with the lease on his basement apartment in Hartlepool. In buying his flat 18 years previously, the unexpired term was of little interest. Fortunately, he realised he needed to take action soon on a lease extension. Logan arranged for a lease extension at the eleventh hour last September. Logan and the freeholder via the managing agents eventually settled on sum of £5,000 . If he had missed the deadline, the figure would have become more exhorbitant by a minimum £1,025.
In 2014 we were phoned by Mrs G Allen who, having was assigned a lease of a first floor apartment in Hartlepool in May 2000. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Similar homes in Hartlepool with a long lease were in the region of £171,800. The mid-range amount of ground rent was £55 invoiced yearly. The lease concluded in 2076. Given that there were 50 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 not including expenses.
In 2011 we were called by Mrs Shannon Vincent who, having completed a garden apartment in Hartlepool in October 2005. The question was if we could approximate the premium could be to prolong the lease by 90 years. Comparable homes in Hartlepool with a long lease were valued about £280,000. The mid-range amount of ground rent was £45 billed quarterly. The lease ended in 2096. Having 70 years remaining we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.