Unfortunately that a Little Hulton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Little Hulton property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Little Hulton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancing solicitors that we work with handle 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.
Oliver was the the leasehold proprietor of a 2 bedroom flat in Little Hulton being marketed with a lease of a few days over fifty eight years outstanding. Oliver on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Dr A Fournier purchased a one bedroom flat in Little Hulton in February 2003. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparative properties in Little Hulton with a long lease were worth £260,000. The mid-range amount of ground rent was £50 billed annually. The lease concluded in 2098. Taking into account 72 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
In 2013 we were e-mailed by Mr and Mrs. H Lewis who, having was assigned a lease of a newly refurbished apartment in Little Hulton in September 1995. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable premises in Little Hulton with an extended lease were worth £256,600. The average ground rent payable was £60 billed annually. The lease ran out in 2078. Given that there were 52 years left we approximated the premium to the landlord for the lease extension to be between £41,800 and £48,400 exclusive of fees.