Hook Norton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Hook Norton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Hook Norton you must investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Hook Norton can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 dealing with Hook Norton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the landlord of her first floor apartment in Hook Norton, Chelsea commenced the lease extension process just as the lease was coming close to the critical eighty-year deadline. The transaction completed in May 2005. The landlord’s charges were kept to an absolute minimum.
Last Christmas we were e-mailed by Mr and Mrs. M Parker , who moved into a ground floor flat in Hook Norton in March 1998. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative homes in Hook Norton with a long lease were in the region of £193,400. The average ground rent payable was £65 billed yearly. The lease concluded in 2084. Having 59 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus expenses.
Mr and Mrs. L Wright owned a studio apartment in Hook Norton in June 1999. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Hook Norton with 100 year plus lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected yearly. The lease came to a finish on 9 April 2095. Taking into account 70 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £10,500 and £12,000 exclusive of fees.