Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Hyde. Inevitably, the period of lease remaining shortens over time. This is often overlooked and only becomes a problem when the property needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Hyde have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. You should give careful deliberation before delaying your Hyde lease extension. Holding off that expense now simply increases the price you will eventually incur for a lease extension
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Hyde,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hyde valuers.
In the wake of eight months of unsuccessful discussions with the freeholder of her purpose-built flat in Hyde, Victoria commenced the lease extension process just as her lease was coming close to the critical eighty-year threshold. The transaction was finalised in April 2008. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were phoned by Mr and Mrs. S Michel , who took over the lease of a one bedroom apartment in Hyde in September 2000. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Hyde with 100 year plus lease were in the region of £243,000. The mid-range amount of ground rent was £65 billed annually. The lease elapsed in 2089. Having 63 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus professional charges.
Last year we were approach by Ms F Roberts , who bought a basement flat in Hyde in February 1998. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparable residencies in Hyde with a long lease were valued around £181,600. The mid-range ground rent payable was £55 billed yearly. The lease lapsed in 2078. Considering the 52 years left we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including costs.