The only way is down when it comes to Hull West lease terms. Hull West leaseholds that have a remaining term lower than 80 years will reduce in market price even faster, and the cost to extend your lease will increase.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Hull West leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Riley owned a conversion apartment in Hull West being sold with a lease of just over 61 years left. Riley on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Riley to exercise his statutory right. Riley obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Last Christmas we were e-mailed by Mr and Mrs. O Hall , who purchased a newly refurbished flat in Hull West in July 1998. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar flats in Hull West with an extended lease were worth £270,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded in 2094. Given that there were 68 years outstanding we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.
Last September we were phoned by Mr Y Nguyen , who owned a one bedroom apartment in Hull West in February 1996. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Comparable flats in Hull West with a long lease were worth £208,600. The mid-range ground rent payable was £60 billed every twelve months. The lease terminated in 2083. Given that there were 57 years outstanding we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including costs.