Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Little Hulton. Inevitably, the period of lease left reduces as time goes by. This is often ignored and only becomes a problem when the flat or house has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Little Hulton have the right to extend the lease for an additional 90 years in accordance with statute. Do give careful attention before delaying your Little Hulton lease extension. Putting off that expense now simply increases the price you will eventually incur to extend your lease
Leasehold properties in Little Hulton with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Little Hulton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Reuben owned a conversion apartment in Little Hulton being marketed with a lease of a few days over 59 years outstanding. Reuben informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Reuben to invoke his statutory right. Reuben procured expert advice and secured an acceptable resolution informally and readily saleable.
Mr Owen Kelly purchased a ground floor apartment in Little Hulton in January 2010. We are asked if we could approximate the price would be to prolong the lease by an additional years. Identical premises in Little Hulton with an extended lease were valued about £245,000. The mid-range ground rent payable was £45 billed yearly. The lease ran out in 2094. Considering the 68 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
In 2010 we were contacted by Mrs W Kelly who, having bought a basement flat in Little Hulton in November 2008. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable residencies in Little Hulton with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected monthly. The lease termination date was on 6 October 2105. Taking into account 79 years unexpired we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.