Chances are that where you own a flat in Hockley you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Hockley,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hockley valuers.
Two years ago Sebastian, started to get close to the eighty-year mark with the lease on his first floor flat in Hockley. In buying his property two decades ago, the length of the lease was of minimal relevance. Luckily, it dawned on him that he would soon be paying way over the odds for a lease extension. Sebastian extended the lease at the eleventh hour in June. Sebastian and the freeholder via the managing agents in the end settled on a premium of £5,500 . If he failed to meet the deadline, the sum would have increased by a minimum £1,000.
In 2012 we were e-mailed by Mrs W Moore who, having acquired a purpose-built flat in Hockley in June 2007. The dilemma was if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical flats in Hockley with a long lease were valued about £255,000. The average ground rent payable was £50 invoiced per annum. The lease ended on 12 August 2097. Given that there were 71 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
Last month we were contacted by Mr Jake Patel , who owned a studio apartment in Hockley in August 2012. The question was if we could approximate the premium would be to prolong the lease by an additional years. Similar properties in Hockley with a long lease were worth £254,200. The average amount of ground rent was £60 collected quarterly. The lease lapsed on 1 January 2077. Given that there were 51 years unexpired we estimated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 not including costs.