Hook Norton leases on residential properties are gradually losing value. Where your lease has about 90 years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay half 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. Flat owners in Hook Norton will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Hook Norton with more than 100 years remaining 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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Engaging our service gives you increased control over the value of your Hook Norton leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the landlord of her basement apartment in Hook Norton, Jasmine commenced the lease extension process as the eighty year deadline was quickly coming. The transaction completed in August 2013. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. D Johnson moved into a ground floor flat in Hook Norton in November 2009. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparative residencies in Hook Norton with an extended lease were worth £210,600. The average ground rent payable was £45 collected monthly. The lease lapsed in 2088. Considering the 62 years left we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of legals.
Last Spring we were phoned by Dr E Reed , who moved into a recently refurbished flat in Hook Norton in April 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Hook Norton with 100 year plus lease were worth £265,000. The average amount of ground rent was £50 invoiced yearly. The lease terminated in 2099. Considering the 73 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.