The market value of a leasehold property in Hoylake is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that formalities can be addressed in advance of the eighty year threshold. Current legislation enables Hoylake qualifying lessees to an additional term of 90 years over and above the remaining term, at a notional rent (zero ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Hoylake lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing unsuccessful negotiations with the landlord of her one bedroom flat in Hoylake, Rhiannon started the lease extension process just as her lease was nearing the crucial eighty-year mark. The legal work completed in October 2009. The landlord’s fees were restricted to approximately 550 pounds.
In 2011 we were approached by Dr Amy Wilson who, having bought a ground floor apartment in Hoylake in November 2012. The question was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative residencies in Hoylake with a long lease were worth £267,600. The average ground rent payable was £65 collected monthly. The lease terminated in 2092. Having 67 years unexpired we calculated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of fees.
In 2014 we were e-mailed by Dr Ali González who, having owned a recently refurbished apartment in Hoylake in July 2008. We are asked if we could estimate the price would be for a ninety year lease extension. Identical residencies in Hoylake with an extended lease were valued about £201,200. The average amount of ground rent was £55 invoiced quarterly. The lease ended in 2081. Having 56 years outstanding we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including expenses.