As the the remaining lease term of a North Hykeham domestic lease diminished so does its value and therefore the value of your property. If the residual term has, over 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. The majority of flat owners in North Hykeham will qualify for this right; nevertheless a lawyer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in North Hykeham,the lease extension experts 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 North Hykeham valuers.
In 2014 Seth, came very near to the 80-year threshold with the lease on his leasehold apartment in North Hykeham. Having purchased his property two decades ago, the lease term was of minimal bearing. Thankfully, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Seth extended the lease just under the wire last March. Seth and the freeholder in the end agreed on sum of £6,000 . If he not met the deadline, the sum would have escalated by a minimum £1,150.
In 2013 we were approached by Dr Megan Sharif who, having acquired a studio apartment in North Hykeham in May 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in North Hykeham with an extended lease were valued about £240,600. The average amount of ground rent was £60 billed every twelve months. The lease terminated on 28 October 2087. Having 62 years left we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of costs.
Last month we were contacted by Mrs G Roux , who purchased a ground floor apartment in North Hykeham in April 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Similar flats in North Hykeham with 100 year plus lease were in the region of £174,200. The mid-range ground rent payable was £55 invoiced per annum. The lease elapsed on 7 June 2076. Considering the 51 years outstanding we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of legals.