The nearer a residential lease in Hockley gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of 100 years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Hockley will qualify for this right; that being said a conveyancer will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Hockley with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service gives you increased control over the value of your Hockley leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Blake was the the leasehold proprietor of a 2 bedroom flat in Hockley on the market with a lease of fraction over fifty eight years remaining. Blake informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Blake to exercise his statutory right. Blake obtained expert advice and secured an acceptable deal informally and readily saleable.
Mr and Mrs. D Turner was assigned a lease of a ground floor apartment in Hockley in July 2003. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparable homes in Hockley with 100 year plus lease were worth £250,000. The average ground rent payable was £50 invoiced per annum. The lease expired on 25 January 2094. Considering the 69 years outstanding we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Mr and Mrs. Y Thompson took over the lease of a one bedroom apartment in Hockley in October 2002. The question was if we could approximate the price could be for a ninety year extension to my lease. Identical properties in Hockley with a long lease were in the region of £290,000. The mid-range amount of ground rent was £60 billed per annum. The lease lapsed on 22 May 2105. Given that there were 80 years left we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus legals.