For anyone whose Hoylake flat is held on a long lease, the message is clear – if no remedial action is taken, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold properties in Hoylake with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | 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 be at least 75 years plus the term of the mortgage at the outset 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 |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
In 2014 Blake, started to get near to the 80-year threshold with the lease on his first floor apartment in Hoylake. In buying his home twenty years ago, the lease term was of little concern. by good luck, it dawned on him that he would soon be paying way over the odds for Extending the lease. Blake was able to extend his lease at the eleventh hour last June. Blake and the landlord subsequently agreed on an amount of £5,000 . If the lease had descended below eighty years, the sum would have gone up by at least £1,025.
Dr U Johnson purchased a ground floor apartment in Hoylake in July 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Hoylake with an extended lease were valued about £184,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease finished in 2079. Given that there were 53 years remaining we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus costs.
In 2011 we were phoned by Mr and Mrs. G Lambert who, having bought a purpose-built flat in Hoylake in February 2000. The question was if we could approximate the premium would be for a ninety year lease extension. Identical properties in Hoylake with an extended lease were in the region of £290,000. The average ground rent payable was £45 billed annually. The lease expiry date was in 2099. Considering the 73 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.