Hockley leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Hockley will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not be entitled. There are also strict timetables and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Hockley with over 100 years left on the lease are sometimes regarded as a ‘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 buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Hockley can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in this area.
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 procuring Hockley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy negotiations with the freeholder of her garden apartment in Hockley, Georgia started the lease extension process as the 80 year mark was swiftly coming. The legal work was finalised in March 2011. The freeholder’s charges were restricted to below six hundred pounds.
Dr S Bernard bought a first floor flat in Hockley in November 2007. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Comparable properties in Hockley with an extended lease were worth £166,400. The average ground rent payable was £60 collected every twelve months. The lease expired on 11 March 2080. Having 54 years outstanding we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus fees.
Mr and Mrs. A Davis was assigned a lease of a first floor apartment in Hockley in May 2002. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative homes in Hockley with 100 year plus lease were in the region of £227,800. The mid-range amount of ground rent was £45 billed yearly. The lease lapsed on 23 May 2091. Considering the 65 years unexpired we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including costs.