The value of Hoole leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the unexpired lease term is less than 80 years
Leasehold premises in Hoole with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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 Hoole can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
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 dealing with Hoole lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the landlord of her first floor apartment in Hoole, Ellen commenced the lease extension process just as the lease was nearing the crucial eighty-year threshold. The lease extension was finalised in April 2010. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were phoned by Dr A Mitchell who, having was assigned a lease of a basement apartment in Hoole in April 1998. We are asked if we could estimate the premium would be to extend the lease by 90 years. Similar homes in Hoole with a long lease were valued about £285,000. The mid-range amount of ground rent was £45 billed per annum. The lease lapsed in 2096. Taking into account 71 years outstanding we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
Dr Joshua Rose took over the lease of a first floor flat in Hoole in September 1995. The question was if we could approximate the price would be to prolong the lease by an additional years. Identical residencies in Hoole with a long lease were worth £225,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease terminated on 27 January 2085. Given that there were 60 years remaining we estimated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 not including expenses.