The nearer a residential lease in Hatton Park gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 125 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner than later. Many flat owners in Hatton Park will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Hatton Park can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Hatton Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Aaron, started to get close to the 80-year threshold with the lease on his first floor flat in Hatton Park. Having bought his home two decades ago, the unexpired term was of minimal importance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Aaron arranged for a lease extension just ahead of time last August. Aaron and the freeholder via the management company subsequently agreed on a premium of £5,500 . If he had missed the deadline, the figure would have escalated by a minimum £1,050.
Last month we were contacted by Dr V Reed , who purchased a one bedroom flat in Hatton Park in June 2000. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative flats in Hatton Park with 100 year plus lease were worth £193,400. The average amount of ground rent was £65 invoiced per annum. The lease expired on 21 August 2085. Considering the 59 years outstanding we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus costs.
Mr E Thompson completed a ground floor flat in Hatton Park in October 2005. We are asked if we could estimate the price would be to prolong the lease by 90 years. Similar flats in Hatton Park with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 collected quarterly. The lease lapsed in 2096. Given that there were 70 years unexpired we approximated the premium to the freeholder to extend the lease to be between £10,500 and £12,000 exclusive of legals.