Hoylake leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Hoylake will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and steps to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a freeholder in Hoylake,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hoylake valuers.
After unsuccessful discussions with the freeholder of her ground floor flat in Hoylake, Harriet commenced the lease extension process as the 80 year mark was rapidly nearing. The legal work completed in March 2008. The landlord’s fees were kept to an absolute minimum.
Last month we were approach by Mr and Mrs. M Martínez , who completed a purpose-built flat in Hoylake in April 2006. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical premises in Hoylake with 100 year plus lease were in the region of £225,800. The average amount of ground rent was £60 billed annually. The lease terminated on 3 February 2085. Taking into account 60 years unexpired we estimated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 plus costs.
In 2011 we were called by Ms K Lefèvre who, having acquired a one bedroom apartment in Hoylake in November 2004. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Hoylake with an extended lease were in the region of £210,000. The average amount of ground rent was £50 billed every twelve months. The lease expired in 2105. Having 80 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.