The re-sale value of a leasehold property in Hazel Grove depends on how many years the lease has remaining. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that all matters can be addressed prior to the eighty year cut off point. Leasehold Reform legislation enables Hazel Grove qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Hazel Grove with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Hazel Grove,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hazel Grove valuers.
Last Autumn Nathan, came dangerously near to the 80-year threshold with the lease on his basement flat in Hazel Grove. Having purchased his property 19 years ago, the lease term was of little interest. As luck would have it, he realised he needed to take action soon on Extending the lease. Nathan extended the lease just under the wire in July. Nathan and the landlord subsequently settled on an amount of £6,000 . If he not met the deadline, the premium would have gone up by a minimum £850.
Mr and Mrs. L Reed bought a first floor apartment in Hazel Grove in May 2001. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Similar homes in Hazel Grove with 100 year plus lease were valued around £176,200. The average ground rent payable was £65 invoiced quarterly. The lease terminated on 11 February 2081. Given that there were 56 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of expenses.
Last month we were approach by Dr L Ricardo , who moved into a one bedroom flat in Hazel Grove in September 2008. We are asked if we could approximate the price would be to prolong the lease by 90 years. Identical residencies in Hazel Grove with an extended lease were in the region of £242,600. The mid-range ground rent payable was £45 billed every twelve months. The lease elapsed on 13 February 2092. Taking into account 67 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of fees.