Hermitage leases on residential properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Hermitage will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and steps to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Hermitage with in excess of one hundred years left 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Hermitage,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hermitage valuers.
Isaac was the the leasehold owner of a high value apartment in Hermitage on the market with a lease of fraction over sixty years unexpired. Isaac on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Isaac to invoke his statutory right. Isaac procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Last Spring we were called by Ms I Johnson , who acquired a first floor flat in Hermitage in September 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Hermitage with 100 year plus lease were worth £191,400. The average ground rent payable was £55 collected every twelve months. The lease terminated in 2080. Having 54 years remaining we approximated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 not including fees.
Last Spring we were e-mailed by Dr P Girard , who acquired a one bedroom apartment in Hermitage in June 1996. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparable flats in Hermitage with 100 year plus lease were valued about £295,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease ran out on 6 August 2100. Having 74 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.