Hulme leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Hulme will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and steps to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Skipton Building Society | |
| Virgin |
Engaging our service will provide you increased control over the value of your Hulme leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Matthew owned a conversion apartment in Hulme on the market with a lease of a few days over fifty eight years unexpired. Matthew on an informal basis contacted his freeholder a well known London-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 rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Matthew to invoke his statutory right. Matthew obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Summer we were approach by Dr M Ward , who was assigned a lease of a studio apartment in Hulme in November 2000. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Comparable properties in Hulme with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced yearly. The lease lapsed in 2097. Considering the 71 years as a residual term we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.
Last month we were phoned by Mr H Richardson , who completed a garden apartment in Hulme in October 2007. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparable homes in Hulme with a long lease were in the region of £225,800. The mid-range ground rent payable was £60 invoiced monthly. The lease end date was in 2086. Having 60 years remaining we approximated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 plus costs.