With a residential leasehold property in Hetton Le Hole, you are in fact renting it for a certain amount 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 long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than 80 years left. Anyone in Hetton Le Hole with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. Once the lease term has below 80 years remaining, under the relevant legislation the freeholder can calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Hetton Le Hole can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer 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 dealing with Hetton Le Hole lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aaron owned a 2 bedroom flat in Hetton Le Hole being marketed with a lease of a few days over 59 years outstanding. Aaron informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Aaron to exercise his statutory right. Aaron procured expert advice and secured an acceptable resolution informally and readily saleable.
Last Spring we were e-mailed by Ms Eleanor Hall , who completed a one bedroom apartment in Hetton Le Hole in January 2004. The question was if we could approximate the price would be for a 90 year lease extension. Comparable properties in Hetton Le Hole with 100 year plus lease were worth £218,400. The average ground rent payable was £60 invoiced quarterly. The lease ran out on 8 July 2085. Considering the 59 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 not including fees.
In 2012 we were approached by Mr and Mrs. R Baker who, having took over the lease of a newly refurbished flat in Hetton Le Hole in April 2012. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative flats in Hetton Le Hole with a long lease were in the region of £205,000. The average amount of ground rent was £50 collected every twelve months. The lease elapsed on 19 September 2105. Considering the 79 years left we approximated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 plus professional charges.