Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Hope Valley. Clearly, the period of lease left reduces over time. This may slip by relatively unnoticed when the property has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Hope Valley have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give due consideration before delaying your Hope Valley lease extension. Putting off the cost now only increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Hope Valley with over one hundred years unexpired on the lease are sometimes regarded as a ‘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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 Hope Valley can be a difficult process. We recommend you get professional help from a lawyer 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 in-depth market knowledge procuring Hope Valley 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 ground floor apartment in Hope Valley, Alicia commenced the lease extension process just as her lease was nearing the crucial 80-year mark. The lease extension was finalised in January 2007. The freeholder’s fees were restricted to under 650 GBP.
Last July we were phoned by Mr Eli Anderson , who took over the lease of a newly refurbished apartment in Hope Valley in August 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable properties in Hope Valley with 100 year plus lease were in the region of £206,200. The average ground rent payable was £60 invoiced every twelve months. The lease ran out on 16 September 2082. Having 56 years unexpired we calculated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including expenses.
Last June we were approach by Mrs Rachael Richardson , who was assigned a lease of a first floor flat in Hope Valley in September 2002. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Identical flats in Hope Valley with an extended lease were worth £300,000. The average amount of ground rent was £50 billed yearly. The lease elapsed in 2102. Having 76 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.