The nearer a residential lease in Hawes nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond 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 unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Hawes will qualify for this right; nevertheless a conveyancer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Hawes with over one hundred years unexpired 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 reversionary interest unless savings on ground rent and service 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Hawes,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hawes valuers.
Kai owned a studio flat in Hawes being marketed with a lease of just over sixty years unexpired. Kai on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Kai to exercise his statutory right. Kai procured expert legal guidance and secured an acceptable deal informally and sell the property.
Ms H Davis completed a studio apartment in Hawes in May 1995. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative properties in Hawes with an extended lease were valued around £261,600. The average ground rent payable was £60 invoiced monthly. The lease concluded in 2077. Considering the 52 years outstanding we calculated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 exclusive of costs.
Mr and Mrs. C Williams acquired a purpose-built flat in Hawes in September 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Comparable residencies in Hawes with a long lease were in the region of £218,000. The average amount of ground rent was £45 billed every twelve months. The lease concluded on 28 May 2088. Having 63 years remaining we approximated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of fees.