Hulme leases on residential properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Hulme will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some cases you may not be entitled. There are also strict deadlines and formalities to comply with once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Hulme can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 Hulme lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy discussions with the freeholder of her studio flat in Hulme, Kelsey commenced the lease extension process as the 80 year mark was swiftly advancing. The lease extension completed in May 2012. The landlord’s fees were kept to an absolute minimum.
In 2013 we were e-mailed by Mr David Lefèvre who, having was assigned a lease of a garden apartment in Hulme in March 2004. We are asked if we could estimate the price would be for a 90 year lease extension. Comparative homes in Hulme with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 collected every twelve months. The lease came to a finish on 16 April 2103. Taking into account 77 years left we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.
Mr and Mrs. W Peterson took over the lease of a one bedroom apartment in Hulme in March 2005. The question was if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Comparable flats in Hulme with 100 year plus lease were in the region of £260,200. The average ground rent payable was £65 billed every twelve months. The lease expired on 23 May 2092. Taking into account 66 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of professional charges.