The market value of Hull East leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
Leasehold properties in Hull East with more than one hundred years remaining 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 purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Hull East can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 a wealth of experience procuring 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.
In recent months Max, started to get near to the 80-year mark with the lease on his ground floor apartment in Hull East. Having bought his property 19 years ago, the length of the lease was of minimal concern. As luck would have it, he recognised he needed to take steps soon on a lease extension. Max was able to extend his lease at the eleventh hour in May. Max and the freeholder via the management company ultimately settled on sum of £5,000 . If the lease had fallen to less than 80 years, the amount would have become more exhorbitant by a minimum £1,000.
Last June we were called by Dr R Bonnet , who completed a purpose-built apartment in Hull East in February 2002. The question was if we could approximate the price could be to prolong the lease by ninety years. Similar flats in Hull East with a long lease were worth £237,600. The average ground rent payable was £45 billed annually. The lease lapsed on 5 November 2092. Given that there were 67 years unexpired we estimated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 plus expenses.
In 2010 we were e-mailed by Mr and Mrs. E Clark who, having took over the lease of a first floor apartment in Hull East in August 2007. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Similar properties in Hull East with a long lease were valued around £280,000. The mid-range amount of ground rent was £55 collected quarterly. The lease ended on 18 October 2103. Having 78 years remaining we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.