When it comes to domestic leasehold property in Hyde Park, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are less than eighty years left. Residents in Hyde Park with a lease nearing 81 years remaining should seriously think of extending it without delay. When a lease has under 80 years remaining, under the current legislation the freeholder can calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Hyde Park with over one hundred years outstanding on the lease are often referred to as ‘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 reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Hyde Park,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hyde Park valuers.
Off the back of unsuccessful correspondence with the freeholder of her studio apartment in Hyde Park, Gemma initiated the lease extension process just as the lease was approaching the all-important 80-year mark. The legal work completed in April 2009. The freeholder’s charges were kept to an absolute minimum.
Mrs G Phillips bought a ground floor apartment in Hyde Park in September 1997. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Hyde Park with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease termination date was in 2101. Taking into account 76 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
Last Spring we were contacted by Mrs Amber Hernández , who took over the lease of a first floor apartment in Hyde Park in June 2004. The question was if we could estimate the price would likely be to extend the lease by 90 years. Comparable properties in Hyde Park with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 invoiced yearly. The lease end date was on 20 February 2081. Considering the 56 years left we approximated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of fees.