Chances are that where you own a flat in Hyde you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Hyde,the lease extension lawyers 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 valuers.
Edward owned a 2 bedroom apartment in Hyde being marketed with a lease of a little over sixty years remaining. Edward on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Edward to exercise his statutory right. Edward procured expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2009 we were called by Mr and Mrs. I Lefèvre who, having acquired a recently refurbished flat in Hyde in November 2007. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative properties in Hyde with 100 year plus lease were worth £174,200. The average ground rent payable was £55 billed yearly. The lease finished in 2077. Considering the 51 years left we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of fees.
Dr Alexander Michel owned a ground floor flat in Hyde in February 2001. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Similar residencies in Hyde with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease came to a finish on 22 January 2097. Considering the 71 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.