The only way is down when it comes to Hucknall lease terms. Hucknall properties that have a remaining term fewer than eighty years will de-escalate in market price at a rapid rate, and the cost to extend your lease will go up.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
Archie owned a conversion apartment in Hucknall on the market with a lease of just over 61 years left. Archie on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Archie to invoke his statutory right. Archie obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2011 we were approached by Dr B Bennett who, having completed a garden apartment in Hucknall in June 1995. We are asked if we could approximate the price would be for a 90 year lease extension. Similar premises in Hucknall with an extended lease were worth £295,000. The mid-range amount of ground rent was £45 billed quarterly. The lease expired on 1 March 2099. Given that there were 74 years left we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Last Spring we were called by Mr and Mrs. T Baker , who purchased a one bedroom flat in Hucknall in November 1995. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical flats in Hucknall with 100 year plus lease were worth £243,000. The mid-range ground rent payable was £65 collected annually. The lease ran out on 26 November 2088. Considering the 63 years outstanding we calculated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 plus expenses.