Hull leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Hull enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Hull you should investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Hull,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hull valuers.
18 months ago Finley, started to get near to the 80-year mark with the lease on his two bedroom apartment in Hull. In buying his flat two decades ago, the lease term was of minimal concern. Luckily, he recognised he needed to take action soon on Extending the lease. Finley extended the lease at the eleventh hour last May. Finley and the landlord ultimately agreed on a premium of £5,000 . If the lease had slipped to less than 80 years, the amount would have escalated by at least £950.
Last Autumn we were contacted by Mr and Mrs. C André , who was assigned a lease of a ground floor apartment in Hull in September 2000. The question was if we could estimate the premium would be to extend the lease by 90 years. Identical residencies in Hull with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected annually. The lease elapsed on 5 June 2084. Given that there were 58 years outstanding we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.
In 2010 we were called by Ms J López who, having owned a recently refurbished flat in Hull in August 2008. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable flats in Hull with 100 year plus lease were valued about £205,000. The mid-range amount of ground rent was £50 billed monthly. The lease ran out in 2104. Taking into account 78 years remaining we calculated the compensation to the freeholder to extend the lease to be within £7,600 and £8,800 not including expenses.