South Hylton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying South Hylton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in South Hylton you would be well advised to investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold properties in South Hylton with more than one hundred years left 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 to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake South Hylton 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 conveyancing solicitor we work with provide it.
Off the back of protracted correspondence with the landlord of her two bedroom flat in South Hylton, Bethan initiated the lease extension process as the 80 year threshold was fast coming. The legal work was concluded in April 2011. The landlord’s fees were restricted to slightly above 500 pounds.
In 2014 we were phoned by Mrs Kayleigh González who, having purchased a ground floor flat in South Hylton in April 2007. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Comparable premises in South Hylton with a long lease were worth £264,000. The average ground rent payable was £60 invoiced per annum. The lease terminated on 21 June 2079. Having 53 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 not including costs.
In 2014 we were approached by Dr C Allen who, having was assigned a lease of a studio apartment in South Hylton in January 2012. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Identical flats in South Hylton with 100 year plus lease were valued around £220,400. The average amount of ground rent was £45 billed every twelve months. The lease ran out in 2090. Taking into account 64 years unexpired we calculated the premium to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of legals.