With a residential leasehold property in Hinckley, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years left. Anyone in Hinckley with a lease nearing 81 years remaining should seriously think of extending it without delay. When the lease term has below eighty years left, under the relevant statute the freeholder can calculate and levy a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Hinckley can be a difficult process. We recommend you get guidance 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 procuring Hinckley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Oscar, came very close to the 80-year mark with the lease on his basement flat in Hinckley. In buying his property two decades ago, the length of the lease was of no significance. Thankfully, he noticed he would soon be paying an escalated premium for Extending the lease. Oscar was able to extend his lease at the eleventh hour in July. Oscar and the landlord in the end settled on sum of £5,500 . If the lease had descended below eighty years, the premium would have become more costly by a minimum £1,050.
Mrs D Bennett purchased a basement apartment in Hinckley in September 2001. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar flats in Hinckley with an extended lease were in the region of £250,000. The average ground rent payable was £50 invoiced every twelve months. The lease finished on 25 November 2095. Considering the 69 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.
In 2012 we were called by Mrs Poppy Hall who, having acquired a one bedroom apartment in Hinckley in September 2008. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical properties in Hinckley with a long lease were worth £285,000. The mid-range amount of ground rent was £55 billed per annum. The lease came to a finish in 2106. Considering the 80 years as a residual term we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.