Hazel Grove leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease dips under 80 years - otherwise a higher premium will be due. Flat owners in Hazel Grove will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and steps to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold premises in Hazel Grove with over 100 years left 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | 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. |
The lawyers that we work with procure 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 lawyer we work with provide it.
After unsuccessful discussions with the landlord of her ground floor flat in Hazel Grove, Rachel started the lease extension process just as her lease was nearing the all-important 80-year deadline. The legal work completed in April 2007. The freeholder’s fees were restricted to slightly above 650 GBP.
In 2009 we were called by Dr A Reed who, having was assigned a lease of a basement apartment in Hazel Grove in March 2003. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Identical properties in Hazel Grove with a long lease were in the region of £235,200. The average amount of ground rent was £45 billed monthly. The lease finished in 2092. Given that there were 66 years outstanding we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.
Last Summer we were called by Dr Jodie Kelly , who took over the lease of a ground floor apartment in Hazel Grove in March 2011. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable premises in Hazel Grove with a long lease were in the region of £280,000. The average ground rent payable was £55 collected every twelve months. The lease came to a finish on 4 March 2103. Having 77 years unexpired we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.