Hawkshead leases on residential properties are gradually decreasing 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 Hawkshead residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Hawkshead you should check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Hawkshead with over 100 years unexpired on the lease are often regarded as a ‘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 reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Hawkshead can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Hawkshead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy negotiations with the freeholder of her ground floor flat in Hawkshead, Eleanor commenced the lease extension process just as her lease was nearing the crucial eighty-year threshold. The legal work completed in June 2010. The landlord’s costs were kept to an absolute minimum.
In 2014 we were approached by Mr and Mrs. N Girard who, having was assigned a lease of a studio apartment in Hawkshead in March 2010. We are asked if we could approximate the price would be for a 90 year lease extension. Comparable homes in Hawkshead with a long lease were in the region of £245,000. The mid-range ground rent payable was £50 invoiced annually. The lease finished in 2092. Taking into account 68 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.
Last Winter we were e-mailed by Mr Max White , who acquired a purpose-built flat in Hawkshead in January 2001. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Identical residencies in Hawkshead with 100 year plus lease were in the region of £285,000. The average ground rent payable was £55 invoiced yearly. The lease concluded on 7 October 2103. Considering the 79 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.