Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Hinckley. Clearly, the period of lease remaining reduces over time. This may slip by relatively unnoticed when the property has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Hinckley have the right to extend the lease for an additional ninety years in accordance with legislation. You should give due attention before putting off your Hinckley lease extension. Holding off that expense now likely increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 Hinckley can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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.
14 months ago Hunter, came critically near to the eighty-year mark with the lease on his studio flat in Hinckley. In buying his home 19 years ago, the length of the lease was of little concern. As luck would have it, he realised he would imminently be paying way over the odds for Extending the lease. Hunter extended the lease at the eleventh hour in September. Hunter and the landlord subsequently settled on a premium of £6,000 . If the lease had gone below 80 years, the amount would have increased by a minimum £875.
In 2010 we were contacted by Dr Alex Simon who, having completed a recently refurbished apartment in Hinckley in April 2012. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Hinckley with a long lease were valued about £246,800. The average ground rent payable was £60 collected annually. The lease elapsed in 2075. Given that there were 50 years remaining we approximated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of costs.
Last Christmas we were phoned by Mr and Mrs. L Roux , who moved into a purpose-built apartment in Hinckley in May 2006. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Identical flats in Hinckley with a long lease were valued around £203,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease finished in 2086. Taking into account 61 years outstanding we calculated the premium to the landlord for the lease extension to be between £20,000 and £23,000 plus expenses.