Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Hucknall. Clearly, the term of lease left reduces over time. This is often ignored and only raises itself as an issue when the residence has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Hucknall have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. Do give careful attention before delaying your Hucknall lease extension. Putting off the cost now simply increases the price you will eventually incur to extend your lease
Leasehold premises in Hucknall with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Hucknall 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 conveyancer we work with provide it.
Logan owned a high value apartment in Hucknall being marketed with a lease of just over sixty years remaining. Logan on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Logan to exercise his statutory right. Logan obtained expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2013 we were called by Mr W André who, having bought a garden flat in Hucknall in January 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparable premises in Hucknall with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 billed per annum. The lease ended in 2080. Having 55 years left we calculated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 not including fees.
In 2009 we were called by Dr L Girard who, having moved into a basement apartment in Hucknall in September 2011. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar flats in Hucknall with a long lease were worth £295,000. The average ground rent payable was £50 invoiced quarterly. The lease terminated in 2100. Considering the 75 years unexpired we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.