Hatton residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold properties in Hatton with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 Hatton 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.
Subsequent to lengthy correspondence with the freeholder of her studio apartment in Hatton, Catherine commenced the lease extension process as the eighty year mark was rapidly coming. The transaction completed in November 2006. The freeholder’s costs were negotiated to under 500 pounds.
Last Autumn we were phoned by Mr and Mrs. J Green , who was assigned a lease of a first floor apartment in Hatton in March 1998. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparable homes in Hatton with a long lease were worth £216,000. The mid-range ground rent payable was £60 invoiced per annum. The lease terminated on 10 September 2084. Taking into account 58 years remaining we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including expenses.
An example of a Lease Extension decision for a Hatton flat is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case was in relation to 1 flat. The unexpired residue of the current lease was 82.93 years.