It’s a harsh certainty that a Hucknall residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Hucknall property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Hucknall will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold properties in Hucknall with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure 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.
In the wake of eight months of unsuccessful negotiations with the landlord of her first floor flat in Hucknall, Alexandra initiated the lease extension process as the eighty year deadline was swiftly approaching. The legal work was concluded in June 2015. The landlord’s fees were negotiated to below six hundred pounds.
Last year we were e-mailed by Dr L Miller , who took over the lease of a ground floor flat in Hucknall in March 2006. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar premises in Hucknall with a long lease were worth £225,800. The average ground rent payable was £60 invoiced monthly. The lease came to a finish on 17 May 2086. Having 60 years left we estimated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 plus expenses.
Dr Samantha Flores took over the lease of a one bedroom apartment in Hucknall in June 2004. The dilemma was if we could estimate the price would be to extend the lease by an additional years. Comparable flats in Hucknall with a long lease were in the region of £210,000. The average ground rent payable was £50 invoiced yearly. The lease terminated on 7 June 2106. Given that there were 80 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.