Hoylake leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Hoylake residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Hoylake you really ought to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Hoylake with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Hoylake can be a difficult process. We recommend you obtain professional help from a conveyancer 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 dealing with Hoylake lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jack owned a high value apartment in Hoylake being marketed with a lease of a little over 61 years unexpired. Jack on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Jack to invoke his statutory right. Jack obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2011 we were approached by Dr Isabella Collins who, having purchased a one bedroom flat in Hoylake in March 1997. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparable residencies in Hoylake with a long lease were valued about £257,800. The average ground rent payable was £65 invoiced yearly. The lease elapsed on 9 August 2091. Having 65 years outstanding we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including expenses.
Last month we were approach by Mr and Mrs. V Smith , who completed a basement flat in Hoylake in November 1998. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical flats in Hoylake with 100 year plus lease were valued around £191,400. The mid-range amount of ground rent was £55 invoiced annually. The lease ended in 2080. Given that there were 54 years outstanding we estimated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 exclusive of fees.