With a long leasehold property in Hexham, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should 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 increases markedly notably when there are fewer than 80 years remaining. Leasehold owners in Hexham with a lease drawing near to 81 years left should seriously think of extending it without delay. When the lease term has below 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and demand a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Hexham with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| 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; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Hexham leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the landlord of her garden apartment in Hexham, Lydia started the lease extension process just as the lease was approaching the all-important eighty-year threshold. The legal work completed in July 2013. The landlord’s fees were kept to an absolute minimum.
Last Summer we were e-mailed by Mr and Mrs. A Parker , who was assigned a lease of a one bedroom apartment in Hexham in October 1996. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical premises in Hexham with an extended lease were valued around £205,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease concluded in 2104. Having 79 years unexpired we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Ms Elizabeth Rodríguez bought a garden flat in Hexham in May 1996. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable homes in Hexham with a long lease were valued around £275,000. The average ground rent payable was £65 collected per annum. The lease lapsed on 25 July 2093. Taking into account 68 years left we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including costs.