With a domestic leasehold premises in Hazel Grove, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are less than 80 years left. Anyone in Hazel Grove with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has below 80 years remaining, under the relevant legislation the freeholder can calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Hazel Grove with in excess of 100 years left 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Hazel Grove 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 conveyancing solicitor we work with provide it.
Mason owned a studio flat in Hazel Grove on the market with a lease of fraction over sixty years unexpired. Mason on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Mason to exercise his statutory right. Mason obtained expert advice and secured satisfactory resolution informally and sell the flat.
In 2014 we were approached by Mr T Adams who, having was assigned a lease of a one bedroom flat in Hazel Grove in May 2005. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Comparable residencies in Hazel Grove with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 billed annually. The lease concluded in 2080. Considering the 54 years unexpired we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including professional charges.
Mr and Mrs. B Michel moved into a recently refurbished apartment in Hazel Grove in June 1995. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Similar properties in Hazel Grove with an extended lease were valued around £227,800. The average amount of ground rent was £45 billed quarterly. The lease concluded on 22 May 2091. Given that there were 65 years unexpired we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including expenses.