It’s an underpublicised truth that a Hoylake residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Hoylake property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term slips below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Hoylake will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Hoylake can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Hoylake lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of lengthy correspondence with the landlord of her purpose-built flat in Hoylake, Daisy commenced the lease extension process as the eighty year mark was quickly advancing. The transaction completed in April 2008. The freeholder’s fees were negotiated to under 500 GBP.
In 2012 we were phoned by Mr and Mrs. F Torres who, having owned a garden flat in Hoylake in October 2010. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Similar residencies in Hoylake with a long lease were valued around £205,000. The average ground rent payable was £50 invoiced quarterly. The lease ended on 2 October 2104. Having 79 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.
Mr and Mrs. M King owned a ground floor flat in Hoylake in July 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Hoylake with an extended lease were valued around £275,000. The average ground rent payable was £65 collected per annum. The lease came to a finish on 2 June 2093. Given that there were 68 years as a residual term we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.