Hull leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Hull will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Hull with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Hull,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hull valuers.
Muhammad owned a 2 bedroom flat in Hull being marketed with a lease of a little over sixty years outstanding. Muhammad informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to invoke his statutory right. Muhammad obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2013 we were approached by Mr and Mrs. P Martinez who, having completed a one bedroom flat in Hull in June 2000. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Similar residencies in Hull with a long lease were valued around £225,800. The mid-range ground rent payable was £60 billed per annum. The lease ran out on 10 June 2085. Given that there were 60 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 exclusive of legals.
In 2010 we were phoned by Mr K Williams who, having was assigned a lease of a purpose-built flat in Hull in April 2001. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparative properties in Hull with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 billed monthly. The lease lapsed in 2105. Having 80 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.