Hulme leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease falls lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Hulme will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some cases you may not qualify. There are prescribed timetables and formalities to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Hulme with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
Lease extensions in Hulme can be a difficult process. We recommend you obtain professional help from a lawyer 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 procuring Hulme lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Riley owned a conversion flat in Hulme on the market with a lease of just over fifty eight years left. Riley on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Riley to exercise his statutory right. Riley procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last year we were approach by Dr Sebastian Ward , who moved into a garden apartment in Hulme in February 2004. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative residencies in Hulme with an extended lease were worth £260,200. The average ground rent payable was £65 collected monthly. The lease terminated on 16 February 2092. Taking into account 66 years unexpired we approximated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 not including costs.
Last Spring we were called by Mr and Mrs. F Williams , who took over the lease of a basement flat in Hulme in November 1995. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative flats in Hulme with an extended lease were valued about £198,800. The mid-range amount of ground rent was £55 invoiced monthly. The lease ran out in 2081. Considering the 55 years outstanding we estimated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of legals.