On the balance of probabilities where you own a flat in Hatton Park you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Hatton Park 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 conveyancing solicitor we work with provide it.
In the wake of 6 months of protracted correspondence with the freeholder of her ground floor apartment in Hatton Park, Leah initiated the lease extension process as the 80 year deadline was swiftly nearing. The legal work was concluded in April 2006. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. S Wright purchased a studio apartment in Hatton Park in August 1995. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable flats in Hatton Park with an extended lease were worth £290,000. The average amount of ground rent was £60 collected every twelve months. The lease terminated on 27 February 2105. Considering the 80 years outstanding we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
Last Christmas we were phoned by Dr Oliver Girard , who was assigned a lease of a studio apartment in Hatton Park in May 2002. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar residencies in Hatton Park with 100 year plus lease were valued around £200,800. The average amount of ground rent was £65 collected annually. The lease lapsed in 2085. Having 60 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.