With a domestic leasehold property in Hinckley, you are in fact renting it for a certain period of time. Modern 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 should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than eighty years remaining. Leasehold owners in Hinckley with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When a lease has under 80 years left, under the relevant legislation the freeholder is entitled to calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Hinckley can be a difficult process. We recommend you procure professional help from a lawyer 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 Hinckley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eli owned a high value apartment in Hinckley being sold with a lease of just over 72 years outstanding. Eli informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Eli to exercise his statutory right. Eli procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Mr and Mrs. G Turner moved into a one bedroom flat in Hinckley in September 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Identical homes in Hinckley with an extended lease were valued about £183,600. The mid-range amount of ground rent was £65 collected per annum. The lease concluded on 12 May 2083. Given that there were 57 years remaining we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus fees.
Dr Jackson Cooper moved into a one bedroom apartment in Hinckley in September 2010. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparable properties in Hinckley with 100 year plus lease were valued around £245,000. The average ground rent payable was £50 collected quarterly. The lease concluded in 2094. Taking into account 68 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.