There is no doubt about it a leasehold flat or house in Hunstanton is a wasting asset as a result of the diminishing lease term. Where the residual term has, over one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner rather than later. Most flat owners in Hunstanton will qualify for this right; nevertheless a conveyancer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Hunstanton with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Hunstanton can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in lease extensions.
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 Hunstanton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sebastian was the the leasehold owner of a conversion flat in Hunstanton being sold with a lease of a few days over sixty years outstanding. Sebastian informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
Last Autumn we were e-mailed by Mr and Mrs. S Ward , who bought a studio flat in Hunstanton in July 1995. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Similar residencies in Hunstanton with an extended lease were valued about £260,200. The average amount of ground rent was £65 collected quarterly. The lease terminated on 15 February 2091. Taking into account 66 years unexpired we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including costs.
In 2011 we were phoned by Mrs V Hill who, having acquired a basement flat in Hunstanton in July 2007. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative residencies in Hunstanton with a long lease were valued about £198,800. The mid-range ground rent payable was £55 billed quarterly. The lease finished on 27 July 2080. Given that there were 55 years remaining we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of costs.