The only way is down when it comes to Hull East lease terms. Hull East leaseholds that have a remaining term shorter than eighty years will reduce in market price even faster, and the cost of extending your lease will rise.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Irrespective of whether you are a tenant or a freeholder in Hull East,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hull East valuers.
Off the back of protracted negotiations with the landlord of her two bedroom apartment in Hull East, Megan initiated the lease extension process just as her lease was approaching the critical eighty-year deadline. The transaction was concluded in January 2005. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were phoned by Mr and Mrs. E David who, having moved into a first floor apartment in Hull East in April 2004. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparative residencies in Hull East with a long lease were in the region of £208,200. The average ground rent payable was £65 collected quarterly. The lease finished on 15 June 2087. Having 61 years unexpired we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus professional charges.
In 2013 we were e-mailed by Mr D Nelson who, having was assigned a lease of a one bedroom apartment in Hull East in February 1995. The question was if we could estimate the price could be for a ninety year lease extension. Identical homes in Hull East with a long lease were worth £260,000. The average amount of ground rent was £50 billed yearly. The lease came to a finish on 17 September 2098. Taking into account 72 years left we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.