When it comes to residential leasehold premises in Hull, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are less than 80 years remaining. Leasehold owners in Hull with a lease approaching 81 years remaining should seriously think of extending it without delay. Once the lease term has under 80 years remaining, under the current statute the landlord can calculate and levy a greater amount, based on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Hull with over 100 years unexpired on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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. |
Lease extensions in Hull can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Hull lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
John was the the leasehold owner of a 2 bedroom flat in Hull being marketed with a lease of a little over 59 years outstanding. John on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were John to invoke his statutory right. John procured expert legal guidance and secured satisfactory resolution informally and sell the flat.
In 2012 we were phoned by Mr Jude Rogers who, having purchased a studio flat in Hull in July 2010. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical residencies in Hull with a long lease were worth £257,800. The mid-range ground rent payable was £65 invoiced annually. The lease terminated on 6 March 2091. Given that there were 65 years left we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of costs.
Mr and Mrs. J Ali took over the lease of a one bedroom flat in Hull in March 2012. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative residencies in Hull with a long lease were worth £191,400. The mid-range amount of ground rent was £55 collected per annum. The lease came to a finish on 2 September 2080. Having 54 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 not including legals.