When it comes to long leasehold premises in Hull East, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than eighty years left. Residents in Hull East with a lease approaching 81 years left should seriously think of extending it as soon as possible. Once a lease has under 80 years left, under the relevant legislation the landlord is entitled to calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Hull East with over one hundred years left on the lease are often 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 upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Hull East can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Hull East lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the freeholder of her basement apartment in Hull East, Amelia started the lease extension process just as the lease was coming close to the all-important 80-year threshold. The lease extension was concluded in January 2007. The freeholder’s costs were kept to an absolute minimum.
Mrs W Rivera purchased a one bedroom apartment in Hull East in July 2003. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable homes in Hull East with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £60 collected per annum. The lease concluded in 2106. Considering the 80 years unexpired we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.
Last year we were contacted by Dr G Moore , who purchased a garden flat in Hull East in October 1997. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable premises in Hull East with 100 year plus lease were worth £200,800. The average ground rent payable was £65 invoiced annually. The lease came to a finish in 2086. Given that there were 60 years unexpired we calculated the premium to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of expenses.