Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Hull West. Clearly, the term of lease remaining shortens over time. This is often overlooked and only becomes a problem when the flat or house needs to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Hull West have the legal entitlement to extend the lease for a further ninety years under statute. You should give due consideration before delaying your Hull West lease extension. Putting off that expense now only increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| 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 |
Lease extensions in Hull West can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in this area.
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 West lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of protracted negotiations with the landlord of her ground floor apartment in Hull West, Rhiannon initiated the lease extension process as the 80 year threshold was quickly nearing. The lease extension was concluded in February 2006. The freeholder’s charges were kept to an absolute minimum.
Last month we were contacted by Ms Zoe Gómez , who bought a basement flat in Hull West in October 2003. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable properties in Hull West with a long lease were valued about £174,200. The average amount of ground rent was £55 invoiced monthly. The lease came to a finish in 2076. Considering the 51 years left we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including legals.
Last January we were approach by Mr and Mrs. K Edwards , who took over the lease of a one bedroom flat in Hull West in September 2004. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparative properties in Hull West with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £45 billed per annum. The lease elapsed in 2096. Given that there were 71 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including professional charges.