Unfortunately that a Hull East 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 first few years due to the loss of value being disguised by increases in the Hull East 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 below eighty years - otherwise a higher premium will be payable. Most leasehold owners in Hull East will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Godiva Mortgages | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Hull East,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hull East valuers.
After protracted correspondence with the freeholder of her garden flat in Hull East, Alexandra initiated the lease extension process just as her lease was nearing the all-important 80-year deadline. The lease extension was finalised in February 2005. The freeholder’s costs were restricted to approximately 550 pounds.
Dr Jade Sánchez took over the lease of a basement apartment in Hull East in October 2004. The question was if we could approximate the price would be for a ninety year lease extension. Similar homes in Hull East with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 billed annually. The lease elapsed on 14 August 2101. Having 75 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
Mrs Lauren Flores moved into a recently refurbished apartment in Hull East in February 2003. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Identical homes in Hull East with 100 year plus lease were worth £173,800. The average ground rent payable was £65 invoiced annually. The lease expired on 14 January 2081. Having 55 years remaining we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of legals.