Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Hoyland. Clearly, the term of lease left shortens as time goes by. This may slip by relatively unnoticed when the property has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Hoyland have the right to extend the lease for an additional ninety years under legislation. Please give careful consideration before delaying your Hoyland lease extension. Putting off that expense now simply increases the price you will ultimately have to pay to extend your lease
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
Lease extensions in Hoyland can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 procuring Hoyland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Harry, came seriously close to the 80-year mark with the lease on his one bedroom flat in Hoyland. In buying his flat two decades ago, the lease term was of little bearing. by good luck, he recognised he needed to take action soon on Extending the lease. Harry was able to extend his lease just under the wire last July. Harry and the landlord who owned the flat above eventually agreed on sum of £6,000 . If he failed to meet the deadline, the amount would have escalated by a minimum £1,000.
Last Summer we were called by Mr and Mrs. O Anderson , who was assigned a lease of a first floor flat in Hoyland in April 2000. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar flats in Hoyland with 100 year plus lease were valued about £245,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expired in 2093. Given that there were 68 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Dr P Martínez completed a garden flat in Hoyland in January 2011. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative flats in Hoyland with a long lease were worth £285,000. The average ground rent payable was £55 collected annually. The lease termination date was on 5 March 2104. Taking into account 79 years as a residual term we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.