The value of Hopton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the unexpired lease term is less than 80 years
It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 |
Lease extensions in Hopton can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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 Hopton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Ethan, started to get near to the 80-year threshold with the lease on his first floor apartment in Hopton. In buying his flat 18 years previously, the unexpired term was of no relevance. Thankfully, he noticed he would soon be paying an inflated amount for a lease extension. Ethan was able to extend his lease at the eleventh hour in May. Ethan and the freeholder via the management company eventually settled on sum of £6,000 . If the lease had slid lower than eighty years, the amount would have escalated by at least £925.
Mr and Mrs. S Bailey owned a purpose-built flat in Hopton in February 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Hopton with an extended lease were in the region of £183,600. The mid-range ground rent payable was £65 collected annually. The lease concluded in 2082. Given that there were 57 years unexpired we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of costs.
In 2011 we were phoned by Mr L Petit who, having purchased a purpose-built flat in Hopton in August 2002. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Comparable homes in Hopton with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 collected every twelve months. The lease expired on 20 February 2093. Considering the 68 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.