Hoyland 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 your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Hoyland residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hoyland you must see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you increased control over the value of your Hoyland leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Eli was the the leasehold proprietor of a 2 bedroom flat in Hoyland being sold with a lease of fraction over 59 years unexpired. Eli informally approached his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Eli to exercise his statutory right. Eli procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
Last Spring we were approach by Mr and Mrs. C Green , who purchased a first floor flat in Hoyland in March 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Similar residencies in Hoyland with 100 year plus lease were valued around £193,400. The mid-range ground rent payable was £65 collected per annum. The lease termination date was on 17 April 2085. Given that there were 59 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of legals.
In 2009 we were approached by Mr and Mrs. C Anderson who, having purchased a one bedroom apartment in Hoyland in April 2012. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative homes in Hoyland with a long lease were in the region of £250,000. The average amount of ground rent was £50 invoiced quarterly. The lease ran out on 8 September 2096. Considering the 70 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.