With a long leasehold property in Hilperton, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Anyone in Hilperton with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once the lease term has below eighty years left, under the relevant statute the landlord is entitled to calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
The lawyers that we work with undertake Hilperton 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 conveyancing solicitor we work with provide it.
Reuben was the the leasehold owner of a conversion flat in Hilperton being marketed with a lease of fraction over sixty years unexpired. Reuben on an informal basis contacted his freeholder being a well known Manchester-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 on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Reuben to invoke his statutory right. Reuben obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
Mr and Mrs. G Martin purchased a basement flat in Hilperton in July 2011. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable flats in Hilperton with 100 year plus lease were valued about £255,000. The average ground rent payable was £50 invoiced every twelve months. The lease concluded on 10 June 2096. Having 71 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.
Mr and Mrs. E Mason was assigned a lease of a garden apartment in Hilperton in March 2001. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Similar residencies in Hilperton with a long lease were in the region of £249,200. The mid-range amount of ground rent was £60 invoiced annually. The lease lapsed on 2 September 2076. Taking into account 51 years outstanding we approximated the compensation to the landlord for the lease extension to be between £42,800 and £49,400 not including costs.