The only way is down when it comes to Hazel Grove lease terms. Hazel Grove properties that have a remaining term shorter than 80 years will de-escalate in value at a rapid rate, and the cost to extend your lease will go up.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Hazel Grove can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.
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 dealing with 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.
Ryan was the the leasehold proprietor of a studio apartment in Hazel Grove being sold with a lease of just over 61 years unexpired. Ryan informally approached his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ryan to exercise his statutory right. Ryan procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last year we were called by Mr B Hernández , who owned a garden flat in Hazel Grove in April 1996. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparable homes in Hazel Grove with an extended lease were worth £245,000. The average ground rent payable was £50 collected quarterly. The lease ended in 2093. Given that there were 68 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
Last Christmas we were called by Ms H Sharif , who acquired a garden flat in Hazel Grove in October 2006. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Hazel Grove with 100 year plus lease were valued about £285,000. The average amount of ground rent was £55 invoiced monthly. The lease concluded on 11 May 2104. Having 79 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.