Hunstanton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Hunstanton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hunstanton you must investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Hunstanton flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is actioned without delay
Leasehold residencies in Hunstanton with in excess of 100 years unexpired 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Hunstanton can be a difficult process. We recommend you procure guidance from a conveyancer 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 Hunstanton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Milo, started to get near to the eighty-year mark with the lease on his one bedroom flat in Hunstanton. In buying his home two decades ago, the length of the lease was of little concern. Fortunately, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Milo was able to extend his lease just under the wire in January. Milo and the landlord subsequently settled on the final figure of £6,000 . If he failed to meet the deadline, the premium would have gone up by at least £1,075.
Dr Tyler Edwards bought a studio apartment in Hunstanton in May 1999. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical premises in Hunstanton with 100 year plus lease were worth £233,200. The mid-range amount of ground rent was £60 invoiced per annum. The lease expired in 2086. Having 61 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 not including fees.
In 2009 we were called by Mrs Chelsea Jackson who, having purchased a studio apartment in Hunstanton in November 1995. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical premises in Hunstanton with a long lease were valued about £171,800. The mid-range amount of ground rent was £55 billed every twelve months. The lease lapsed on 8 June 2075. Considering the 50 years outstanding we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus professional charges.