The only way is down when it comes to South Hylton lease terms. South Hylton leaseholds that have a residual term fewer than 80 years will de-escalate in value even faster, and the cost to extend your lease will rise.
Leasehold properties in South Hylton with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Engaging our service gives you better control over the value of your South Hylton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Omar was the the leasehold proprietor of a high value apartment in South Hylton being sold with a lease of a few days over sixty years outstanding. Omar on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Omar to exercise his statutory right. Omar obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Last month we were e-mailed by Mr and Mrs. O Cooper , who completed a purpose-built flat in South Hylton in March 2003. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar flats in South Hylton with an extended lease were worth £227,800. The average amount of ground rent was £45 billed annually. The lease finished on 17 May 2090. Having 65 years left we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.
Last Summer we were contacted by Mr and Mrs. B Bernard , who bought a studio flat in South Hylton in April 2010. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Comparable properties in South Hylton with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease ended on 15 August 2101. Given that there were 76 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.