As the length of the unexpired term of a Hathern domestic lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 99 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner than later. Many flat owners in Hathern will meet the qualifying criteria; nevertheless a conveyancer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Hathern with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 conveyancing solicitors that we work with undertake Hathern 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 lawyer we work with provide it.
Eli owned a high value apartment in Hathern on the market with a lease of a little over sixty years unexpired. Eli on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Eli to invoke his statutory right. Eli obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
Dr Rory Jackson owned a purpose-built apartment in Hathern in June 2010. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Similar properties in Hathern with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 invoiced annually. The lease terminated on 15 May 2101. Considering the 76 years unexpired we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
Mr and Mrs. A Ramírez owned a ground floor flat in Hathern in January 2005. The question was if we could estimate the premium would be to prolong the lease by 90 years. Comparable residencies in Hathern with an extended lease were in the region of £257,800. The mid-range ground rent payable was £65 collected per annum. The lease ran out in 2090. Given that there were 65 years left we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of costs.