For anyone whose Hawkhurst home is held on a long lease, the message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Hawkhurst,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hawkhurst valuers.
In recent months Callum, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Hawkhurst. In buying his property 18 years ago, the length of the lease was of no importance. Luckily, he recognised he needed to take action soon on Extending the lease. Callum extended the lease just in the nick of time last August. Callum and the landlord who owned the flat above in the end settled on an amount of £6,000 . If he not met the deadline, the sum would have increased by at least £950.
In 2012 we were e-mailed by Mr and Mrs. L Smith who, having bought a garden apartment in Hawkhurst in October 2006. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparable residencies in Hawkhurst with a long lease were worth £265,000. The average amount of ground rent was £55 billed every twelve months. The lease came to a finish in 2100. Having 74 years remaining we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Summer we were contacted by Mr and Mrs. U Harris , who owned a first floor flat in Hawkhurst in April 1998. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Identical premises in Hawkhurst with a long lease were valued about £166,400. The average amount of ground rent was £60 billed yearly. The lease came to a finish on 16 April 2080. Considering the 54 years left we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus professional charges.