With a residential leasehold premises in Hook, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Leasehold owners in Hook with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has below eighty years left, under the relevant legislation the freeholder is entitled to calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Hook with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify 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; |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Hook leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the freeholder of her first floor flat in Hook, Charlotte initiated the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The transaction completed in March 2008. The landlord’s costs were kept to an absolute minimum.
Last Summer we were phoned by Ms Isabella Richardson , who completed a garden apartment in Hook in January 2004. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparable homes in Hook with a long lease were worth £235,200. The average amount of ground rent was £45 collected every twelve months. The lease elapsed on 25 October 2091. Given that there were 66 years remaining we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.
An example of a Lease Extension decision for a Hook property is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case affected 1 flat.