On the balance of probabilities where you own a flat in Hazel Grove you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Hazel Grove,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hazel Grove valuers.
Two years ago Muhammad, started to get close to the eighty-year threshold with the lease on his basement apartment in Hazel Grove. Having bought his property 18 years ago, the unexpired term was of no importance. by good luck, he realised he would soon be paying an inflated amount for Extending the lease. Muhammad extended the lease just under the wire in March. Muhammad and the landlord who owned the flat above in the end agreed on sum of £6,000 . If the lease had slid below eighty years, the sum would have increased by at least £900.
Last Summer we were approach by Mr and Mrs. E Díaz , who acquired a purpose-built flat in Hazel Grove in August 2000. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical properties in Hazel Grove with an extended lease were worth £290,000. The average ground rent payable was £55 collected monthly. The lease terminated on 21 July 2106. Given that there were 80 years outstanding we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.
Mrs Melissa Martin was assigned a lease of a ground floor flat in Hazel Grove in January 2001. We are asked if we could estimate the price could be for a 90 year lease extension. Identical properties in Hazel Grove with an extended lease were valued around £200,800. The average amount of ground rent was £65 billed quarterly. The lease finished in 2086. Given that there were 60 years remaining we estimated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 plus expenses.