Unfortunately that a Hull North residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Hull North property market.Once your lease gets to 85ish years, you should 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 falls below eighty years - otherwise a higher amount will be payable. The majority of flat owners in Hull North will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in Hull North with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hull North can be a difficult process. We recommend you get professional help 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 a wealth of experience dealing with Hull North lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathan was the the leasehold owner of a conversion flat in Hull North being marketed with a lease of fraction over fifty eight years remaining. Nathan informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Nathan to exercise his statutory right. Nathan procured expert advice and was able to make an informed decision and handle with the matter and sell the flat.
Mr and Mrs. B Gray owned a recently refurbished flat in Hull North in May 2004. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical premises in Hull North with a long lease were worth £254,200. The average ground rent payable was £60 collected per annum. The lease termination date was in 2077. Given that there were 51 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 not including professional charges.
In 2009 we were approached by Dr T Hall who, having moved into a ground floor apartment in Hull North in March 2005. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar homes in Hull North with an extended lease were worth £210,600. The mid-range ground rent payable was £45 invoiced annually. The lease came to a finish in 2088. Having 62 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of legals.