With a long leasehold property in Hawkhurst, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Residents in Hawkhurst with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once the lease term has below 80 years outstanding, under the relevant legislation the landlord can calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with procure Hawkhurst 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 conveyancer we work with provide it.
Caleb was the the leasehold owner of a high value flat in Hawkhurst on the market with a lease of a little over 72 years left. Caleb on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Caleb to exercise his statutory right. Caleb procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Ms Lucy Davis was assigned a lease of a one bedroom apartment in Hawkhurst in January 1999. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Identical residencies in Hawkhurst with an extended lease were in the region of £200,800. The average ground rent payable was £65 collected yearly. The lease termination date was in 2085. Having 60 years left we approximated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 plus expenses.
In 2012 we were phoned by Mrs B Bell who, having was assigned a lease of a ground floor flat in Hawkhurst in November 2008. The question was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable properties in Hawkhurst with a long lease were in the region of £255,000. The average ground rent payable was £50 invoiced annually. The lease concluded on 16 May 2096. Given that there were 71 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.