Hinckley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Hinckley enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Hinckley you would be well advised to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Hinckley with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Hinckley can be a difficult process. We recommend you get professional help from a lawyer and surveyor 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 a wealth of experience 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.
During the course of the last few months Felix, came perilously near to the 80-year mark with the lease on his garden flat in Hinckley. Having bought his property two decades ago, the lease term was of minimal significance. Luckily, he became aware that he needed to take steps soon on Extending the lease. Felix arranged for a lease extension just ahead of time last June. Felix and the freeholder via the management company subsequently agreed on the final figure of £6,000 . If the lease had dropped to less than eighty years, the amount would have gone up by at least £1,150.
Mr and Mrs. D White took over the lease of a basement flat in Hinckley in April 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Hinckley with a long lease were worth £220,400. The mid-range ground rent payable was £45 invoiced monthly. The lease finished in 2090. Taking into account 64 years left we estimated the premium to the landlord for the lease extension to be between £16,200 and £18,600 plus expenses.
Mrs Leah Dupont completed a purpose-built flat in Hinckley in March 1996. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar properties in Hinckley with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed quarterly. The lease terminated on 10 November 2101. Having 75 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.