There is no doubt about it a leasehold flat or house in Hatton is a wasting asset as a result of the diminishing lease term. Where the residual term has, over 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. Many flat owners in Hatton will qualify for this right; however a conveyancer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Hatton with more than 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 upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle 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.
In 2014 Archie, started to get near to the eighty-year threshold with the lease on his first floor apartment in Hatton. Having bought his property 18 years ago, the unexpired term was of minimal importance. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Archie arranged for a lease extension just under the wire in March. Archie and the freeholder via the management company in the end agreed on the final figure of £5,000 . If the lease had descended below 80 years, the premium would have escalated by at least £1,025.
Dr Amber Gray took over the lease of a studio flat in Hatton in August 1997. We are asked if we could estimate the price would be for a 90 year lease extension. Identical properties in Hatton with an extended lease were in the region of £208,600. The mid-range ground rent payable was £60 billed quarterly. The lease end date was on 16 August 2082. Considering the 57 years remaining we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of professional charges.
An example of a Lease Extension case for a Hatton premises is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case related to 1 flat. The unexpired lease term was 82.93 years.