Hawes leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Hawes residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Hawes you should check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Hawes with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Lease extensions in Hawes can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience 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.
Two years ago Dylan, started to get close to the 80-year mark with the lease on his purpose- built flat in Hawes. In buying his home twenty years ago, the unexpired term was of no importance. As luck would have it, he became aware that he would soon be paying an inflated amount for Extending the lease. Dylan was able to extend his lease just under the wire in March. Dylan and the landlord who owned the flat above in the end settled on a premium of £6,000 . If the lease had fallen to less than 80 years, the amount would have become more exhorbitant by a minimum £975.
In 2010 we were e-mailed by Mr and Mrs. Y Morel who, having acquired a garden apartment in Hawes in September 1999. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar homes in Hawes with an extended lease were valued about £280,000. The average amount of ground rent was £55 billed per annum. The lease elapsed in 2104. Considering the 78 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.
In 2012 we were called by Mr Connor Hill who, having completed a newly refurbished flat in Hawes in April 1996. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable flats in Hawes with a long lease were in the region of £191,000. The average amount of ground rent was £65 billed yearly. The lease came to a finish in 2084. Taking into account 58 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 exclusive of legals.