Hoyland leases on residential deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Hoyland will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain circumstances you may not qualify. There are also strict timetables and procedures to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| 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 |
| Yorkshire 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. |
Retaining our service gives you increased control over the value of your Hoyland leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Rory, started to get close to the eighty-year mark with the lease on his leasehold flat in Hoyland. In buying his property 19 years ago, the unexpired term was of no importance. Fortunately, he became aware that he needed to take action soon on a lease extension. Rory extended the lease just under the wire last August. Rory and the freeholder subsequently settled on a premium of £5,500 . If the lease had slipped below 80 years, the figure would have escalated by at least £875.
Mr J Clarke owned a one bedroom flat in Hoyland in November 2004. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative homes in Hoyland with a long lease were worth £235,200. The average ground rent payable was £45 invoiced yearly. The lease terminated on 12 January 2092. Having 66 years unexpired we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.
In 2010 we were phoned by Dr Edward Bennett who, having was assigned a lease of a basement apartment in Hoyland in October 1998. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparative premises in Hoyland with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 billed per annum. The lease lapsed on 3 October 2103. Taking into account 77 years unexpired we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.