With a domestic leasehold premises in Hyde, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider 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 increases markedly notably once there are fewer than eighty years left. Anyone in Hyde with a lease approaching 81 years left should seriously think of extending it sooner as opposed to later. Once the lease term has less than eighty years left, under the relevant legislation the landlord is entitled to calculate and levy a larger amount, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hyde can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in this area.
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 a wealth of experience procuring Hyde lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy correspondence with the landlord of her leasehold flat in Hyde, Holly commenced the lease extension process as the 80 year mark was rapidly nearing. The lease extension was finalised in April 2015. The landlord’s costs were kept to an absolute minimum.
Last Autumn we were phoned by Dr E Smith , who took over the lease of a studio flat in Hyde in July 2003. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparable residencies in Hyde with 100 year plus lease were worth £250,400. The mid-range ground rent payable was £65 invoiced yearly. The lease ran out on 6 August 2089. Having 64 years left we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of costs.
Last month we were e-mailed by Mr and Mrs. K López , who acquired a one bedroom apartment in Hyde in September 2009. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparative homes in Hyde with 100 year plus lease were worth £191,400. The average amount of ground rent was £55 invoiced monthly. The lease elapsed in 2079. Having 54 years left we estimated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 plus legals.