Hucknall leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Hucknall will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are prescribed timetables and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Hucknall with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| 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. |
Engaging our service will provide you better control over the value of your Hucknall leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Sebastian was the the leasehold owner of a 2 bedroom apartment in Hucknall on the market with a lease of a little over 61 years outstanding. Sebastian on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking 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. No ground rent would be payable on a lease extension were Sebastian to invoke his statutory right. Sebastian procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2014 we were phoned by Mrs Natalie Walker who, having bought a purpose-built apartment in Hucknall in July 1995. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar properties in Hucknall with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 invoiced quarterly. The lease concluded in 2105. Given that there were 79 years left we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.
Last month we were phoned by Mr and Mrs. U Ramírez , who purchased a first floor flat in Hucknall in January 2007. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical homes in Hucknall with a long lease were in the region of £275,000. The mid-range ground rent payable was £65 invoiced annually. The lease finished in 2094. Considering the 68 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.