Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Hull. Inevitably, the length of lease left reduces as time goes by. This is often overlooked and only becomes a problem when the residence needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Hull have the legal entitlement to extend the lease for an additional 90 years under statute. Do give due deliberation before delaying your Hull lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend your lease
Leasehold premises in Hull with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
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 experience and the close ties they enjoy with Hull valuers.
Last Summer Archie, came precariously near to the eighty-year mark with the lease on his first floor flat in Hull. Having purchased his flat twenty years ago, the length of the lease was of no significance. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Archie extended the lease just under the wire last May. Archie and the landlord who owned the flat above subsequently settled on sum of £5,000 . If he failed to meet the deadline, the price would have gone up by at least £1,050.
In 2009 we were phoned by Mr and Mrs. G Jackson who, having moved into a newly refurbished apartment in Hull in November 2000. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable properties in Hull with an extended lease were valued around £248,000. The average ground rent payable was £65 billed per annum. The lease came to a finish on 10 March 2089. Having 63 years remaining we approximated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 plus expenses.
Dr Alex Cook bought a garden flat in Hull in June 2002. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative homes in Hull with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 invoiced quarterly. The lease lapsed on 22 July 2078. Given that there were 52 years remaining we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of legals.