When it comes to domestic leasehold property in Hotwells, you are actually buying a right to live in a property for a prescribed time frame. In recent years 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 may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Leasehold owners in Hotwells with a lease nearing 81 years remaining should seriously think of extending it without delay. When a lease has below 80 years remaining, under the current Act the landlord is entitled to calculate and charge a greater amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Hotwells with in excess of 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 property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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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Lease extensions in Hotwells can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in this area.
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 Hotwells lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Edward, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Hotwells. Having purchased his property two decades ago, the unexpired term was of minimal concern. Thankfully, he recognised he would soon be paying an escalated premium for a lease extension. Edward was able to extend his lease just under the wire last March. Edward and the landlord ultimately agreed on a premium of £6,000 . If he had missed the deadline, the amount would have escalated by a minimum £1,125.
In 2014 we were contacted by Mr and Mrs. H Martinez who, having bought a first floor apartment in Hotwells in September 2010. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparable premises in Hotwells with an extended lease were valued about £295,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease end date was on 16 September 2100. Having 74 years left we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.
Last Autumn we were approach by Dr P Ramírez , who was assigned a lease of a newly refurbished flat in Hotwells in July 2008. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Identical properties in Hotwells with a long lease were worth £243,000. The mid-range amount of ground rent was £65 collected monthly. The lease ended in 2089. Given that there were 63 years as a residual term we approximated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of expenses.