Hoyland leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Hoyland enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Hoyland you would be well advised to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Hoyland with in excess of one hundred years left 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 home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Hoyland leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the freeholder of her first floor flat in Hoyland, Abbie commenced the lease extension process as the eighty year deadline was quickly coming. The transaction completed in July 2013. The landlord’s costs were restricted to slightly above 500 GBP.
Last Summer we were approach by Mrs Maisie Hall , who completed a ground floor flat in Hoyland in February 2000. The question was if we could approximate the price would likely be to extend the lease by ninety years. Comparable homes in Hoyland with 100 year plus lease were worth £285,000. The average ground rent payable was £55 collected annually. The lease came to a finish on 1 April 2106. Considering the 80 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.
Mr N Nguyen was assigned a lease of a basement flat in Hoyland in April 2006. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Similar homes in Hoyland with 100 year plus lease were valued about £200,800. The average amount of ground rent was £65 invoiced yearly. The lease elapsed on 18 September 2086. Given that there were 60 years unexpired we approximated the premium to the landlord for the lease extension to be between £20,900 and £24,200 plus expenses.