There is no doubt about it a leasehold property in Little Hulton is a wasting asset as a result of the shortening lease. Where the lease has, beyond 125 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. The majority of flat owners in Little Hulton will qualify for this right; that being said a lawyer should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Little Hulton,the lease extension lawyers 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 Little Hulton valuers.
Nathan owned a conversion apartment in Little Hulton on the market with a lease of fraction over 72 years left. Nathan informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Nathan to invoke his statutory right. Nathan obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Last September we were approach by Mr and Mrs. M Sharif , who moved into a purpose-built apartment in Little Hulton in September 2008. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Similar residencies in Little Hulton with a long lease were valued around £227,800. The mid-range ground rent payable was £45 invoiced yearly. The lease lapsed in 2090. Given that there were 65 years left we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus legals.
Mr A Young owned a garden flat in Little Hulton in April 2009. The question was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative flats in Little Hulton with a long lease were valued about £275,000. The average ground rent payable was £55 invoiced annually. The lease ended in 2101. Considering the 76 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.