The nearer a residential lease in Hawes gets to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has under 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 reason why you should extend the lease without delay. Many flat owners in Hawes will qualify for this right; however a lawyer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Hawes with over one hundred years left 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 buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| Halifax | 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. |
Engaging our service will provide you better control over the value of your Hawes leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the freeholder of her ground floor apartment in Hawes, Lauren started the lease extension process as the 80 year threshold was rapidly approaching. The legal work was finalised in July 2014. The freeholder’s costs were negotiated to about 550 GBP.
Dr Millie Wright acquired a one bedroom flat in Hawes in July 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Identical residencies in Hawes with a long lease were in the region of £198,400. The average amount of ground rent was £65 billed every twelve months. The lease concluded in 2085. Having 59 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus professional charges.
Last Winter we were phoned by Mr and Mrs. S Clarke , who acquired a basement apartment in Hawes in February 2012. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative residencies in Hawes with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 invoiced monthly. The lease termination date was in 2096. Having 70 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.