The nearer a residential lease in Hatton nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of 100 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Many flat owners in Hatton will qualify for this right; that being said a conveyancing solicitor should be able to advise whether you qualify 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 residencies in Hatton with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Hatton,the lease extension solicitors that we work with will always be happy 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 the wake of 9 months of lengthy correspondence with the landlord of her first floor flat in Hatton, Melissa initiated the lease extension process as the 80 year deadline was rapidly approaching. The legal work was finalised in June 2009. The landlord’s costs were negotiated to below five hundred pounds.
Last month we were phoned by Mrs H Davies , who moved into a first floor apartment in Hatton in September 1995. The dilemma was if we could approximate the premium would be to extend the lease by ninety years. Identical homes in Hatton with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 collected per annum. The lease termination date was on 9 October 2099. Taking into account 73 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
An example of a Lease Extension case for a Hatton property 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.