Hopton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Hopton tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Hopton you must check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Hopton with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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:
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Irrespective of whether you are a tenant or a landlord in Hopton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hopton valuers.
Half a year ago Sebastian, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Hopton. In buying his flat 18 years previously, the unexpired term was of no bearing. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Sebastian arranged for a lease extension at the eleventh hour in September. Sebastian and the freeholder in the end agreed on the final figure of £5,000 . If the lease had slipped to less than 80 years, the price would have increased by at least £1,050.
In 2014 we were phoned by Mr and Mrs. C Cook who, having bought a studio flat in Hopton in August 2009. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable residencies in Hopton with an extended lease were in the region of £235,200. The mid-range amount of ground rent was £45 invoiced per annum. The lease finished on 2 August 2092. Taking into account 66 years left we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
Last Autumn we were e-mailed by Dr Logan Wright , who completed a studio flat in Hopton in April 1998. The question was if we could estimate the premium could be to extend the lease by an additional years. Comparative residencies in Hopton with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £55 collected monthly. The lease expired on 1 February 2103. Considering the 77 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.