When it comes to long leasehold property in Hazel Grove, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are fewer than eighty years left. Leasehold owners in Hazel Grove with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has below eighty years outstanding, under the current statute the landlord is entitled to calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Lease extensions in Hazel Grove can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Hazel Grove lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy correspondence with the landlord of her first floor flat in Hazel Grove, Maisie initiated the lease extension process as the 80 year deadline was swiftly coming. The transaction completed in February 2015. The landlord’s fees were negotiated to under 500 pounds.
Last Autumn we were contacted by Mr and Mrs. I Garcia , who acquired a one bedroom flat in Hazel Grove in July 2000. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar residencies in Hazel Grove with an extended lease were worth £218,000. The mid-range ground rent payable was £45 billed every twelve months. The lease elapsed in 2088. Considering the 63 years unexpired we calculated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 not including expenses.
Last Spring we were called by Mr Alexander Stewart , who purchased a ground floor flat in Hazel Grove in April 2012. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative premises in Hazel Grove with a long lease were worth £265,000. The average amount of ground rent was £55 collected monthly. The lease concluded in 2099. Given that there were 74 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.