The nearer a domestic lease in Hawes nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, over one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years unexpired 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 consider extending without delay. The majority of flat owners in Hawes will qualify for this right; however a conveyancer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Hawes with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Hawes can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Hawes lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Connor owned a 2 bedroom flat in Hawes being marketed with a lease of a little over 61 years outstanding. Connor informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were Connor to exercise his statutory right. Connor obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
In 2011 we were called by Dr Y Phillips who, having owned a garden apartment in Hawes in July 1998. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical homes in Hawes with a long lease were worth £275,000. The average amount of ground rent was £55 billed monthly. The lease concluded in 2101. Having 76 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.
In 2009 we were e-mailed by Mr Zachary Robinson who, having took over the lease of a ground floor apartment in Hawes in November 2003. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative homes in Hawes with an extended lease were in the region of £176,200. The mid-range amount of ground rent was £65 billed quarterly. The lease ran out on 16 July 2081. Taking into account 56 years as a residual term we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 not including costs.