With a residential leasehold premises in Hatton, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than eighty years left. Residents in Hatton with a lease drawing near to 81 years left should seriously think of extending it without delay. When a lease has under 80 years remaining, under the current legislation the freeholder can calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Hatton with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Hatton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hatton valuers.
In 2014 Aiden, came precariously near to the 80-year threshold with the lease on his two bedroom flat in Hatton. Having bought his flat 18 years ago, the lease term was of minimal importance. As luck would have it, he noticed he would imminently be paying an escalated premium for a lease extension. Aiden extended the lease just in the nick of time in April. Aiden and the landlord eventually settled on sum of £6,000 . If the lease had slipped below eighty years, the figure would have increased by a minimum £975.
Mr Cameron Bennett owned a recently refurbished apartment in Hatton in July 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative flats in Hatton with 100 year plus lease were worth £210,000. The mid-range ground rent payable was £50 collected per annum. The lease finished in 2105. Taking into account 80 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
An example of a Lease Extension matter before the tribunal for a Hatton residence 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 lease term was 82.93 years.