For those whose Hull West flat is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
Leasehold residencies in Hull West with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Hull West leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the landlord of her basement flat in Hull West, Abigail initiated the lease extension process just as her lease was nearing the critical 80-year deadline. The lease extension completed in June 2014. The landlord’s costs were negotiated to about 650 pounds.
Mrs Gemma Phillips completed a one bedroom flat in Hull West in January 1996. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparable flats in Hull West with a long lease were in the region of £280,000. The average ground rent payable was £45 collected annually. The lease finished on 9 January 2095. Given that there were 70 years left we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
In 2013 we were contacted by Mr and Mrs. B Murphy who, having acquired a purpose-built flat in Hull West in October 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparative properties in Hull West with a long lease were worth £218,400. The mid-range ground rent payable was £60 collected every twelve months. The lease terminated in 2084. Considering the 59 years left we approximated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 not including fees.