The nearer a residential lease in Hinckley nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, over one hundred years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Hinckley will qualify for this right; that being said a lawyer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Hinckley with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Hinckley,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hinckley valuers.
Thomas owned a studio flat in Hinckley being sold with a lease of a few days over fifty eight years remaining. Thomas informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Thomas to invoke his statutory right. Thomas obtained expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Last year we were e-mailed by Ms Amy Young , who owned a ground floor apartment in Hinckley in August 2008. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Hinckley with a long lease were worth £203,200. The average amount of ground rent was £65 invoiced every twelve months. The lease lapsed in 2087. Having 61 years outstanding we estimated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of expenses.
Mrs Stephanie Nguyen moved into a one bedroom flat in Hinckley in June 1997. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable residencies in Hinckley with 100 year plus lease were valued around £260,000. The average ground rent payable was £50 billed annually. The lease came to a finish in 2098. Considering the 72 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.