Hinton St George 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 your lease gets more expensive. It is the case that most Hinton St George tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Hinton St George you should check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Hinton St George with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Retaining our service will provide you increased control over the value of your Hinton St George leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted negotiations with the freeholder of her one bedroom apartment in Hinton St George, Sophia initiated the lease extension process just as the lease was nearing the crucial 80-year threshold. The lease extension was finalised in July 2007. The landlord’s fees were restricted to approximately 550 GBP.
Last year we were called by Mr Y Robinson , who was assigned a lease of a purpose-built flat in Hinton St George in November 2011. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable homes in Hinton St George with a long lease were valued about £275,000. The average amount of ground rent was £45 collected every twelve months. The lease elapsed in 2094. Having 69 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.
In 2013 we were approached by Mr and Mrs. U Green who, having owned a basement flat in Hinton St George in April 2005. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable flats in Hinton St George with an extended lease were in the region of £216,000. The mid-range ground rent payable was £60 invoiced monthly. The lease finished in 2083. Given that there were 58 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including costs.