With a domestic leasehold property in Hawes, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are less than 80 years remaining. Anyone in Hawes with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has fewer than 80 years remaining, under the current Act the landlord can calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Hawes with in excess of one hundred years outstanding 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Hawes lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Luca was the the leasehold proprietor of a studio apartment in Hawes on the market with a lease of a little over 59 years remaining. Luca informally approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Luca to exercise his statutory right. Luca obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2013 we were approached by Dr P Fournier who, having bought a first floor apartment in Hawes in May 2007. The question was if we could estimate the price would be for a ninety year lease extension. Comparative flats in Hawes with 100 year plus lease were worth £225,400. The mid-range ground rent payable was £45 invoiced quarterly. The lease elapsed on 6 May 2089. Having 64 years outstanding we approximated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 not including expenses.
In 2010 we were e-mailed by Mrs Jessica Moore who, having completed a purpose-built apartment in Hawes in May 2005. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Hawes with 100 year plus lease were valued about £270,000. The mid-range amount of ground rent was £55 collected per annum. The lease elapsed in 2100. Given that there were 75 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.