There is no doubt about it a leasehold flat or house in Hebden Bridge is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 125 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Hebden Bridge will meet the qualifying criteria; however a conveyancer will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Hebden Bridge 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 conveyancer we work with provide it.
Milo owned a studio apartment in Hebden Bridge on the market with a lease of just over fifty eight years left. Milo informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Milo to invoke his statutory right. Milo obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2014 we were approached by Ms M François who, having acquired a one bedroom flat in Hebden Bridge in August 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Identical properties in Hebden Bridge with an extended lease were in the region of £166,400. The mid-range amount of ground rent was £60 billed yearly. The lease finished on 3 November 2080. Having 54 years unexpired we calculated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including costs.
Last April we were approach by Mrs A Rose , who bought a purpose-built flat in Hebden Bridge in February 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Comparable properties in Hebden Bridge with an extended lease were valued around £227,800. The average amount of ground rent was £45 invoiced per annum. The lease elapsed in 2091. Considering the 65 years remaining we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.