Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Hathern. Inevitably, the length of lease left reduces as time goes by. This may pass by relatively unnoticed when the property has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Hathern have the legal entitlement to extend the lease for a further 90 years under legislation. You should give careful attention before delaying your Hathern lease extension. Holding off the cost now simply increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hathern can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 procuring Hathern lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Hunter, started to get near to the 80-year threshold with the lease on his leasehold flat in Hathern. Having purchased his home twenty years ago, the length of the lease was of minimal interest. Fortunately, he noticed he would soon be paying way over the odds for a lease extension. Hunter arranged for a lease extension just under the wire last June. Hunter and the freeholder eventually agreed on an amount of £6,000 . If the lease had dipped to less than 80 years, the price would have escalated by a minimum £1,125.
Mr and Mrs. G Clarke owned a first floor flat in Hathern in January 1996. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical homes in Hathern with an extended lease were worth £171,800. The mid-range ground rent payable was £55 invoiced yearly. The lease elapsed in 2076. Considering the 50 years left we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of expenses.
Dr Natalie Adams purchased a ground floor flat in Hathern in June 1999. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar homes in Hathern with a long lease were worth £280,000. The average ground rent payable was £45 billed quarterly. The lease ended on 8 October 2096. Given that there were 70 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.