Hermitage leases on residential deteriorating in value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Hermitage will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hermitage can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 a wealth of experience procuring Hermitage lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Evan, started to get close to the 80-year threshold with the lease on his first floor apartment in Hermitage. Having bought his property two decades ago, the length of the lease was of little interest. by good luck, he recognised he needed to take steps soon on a lease extension. Evan was able to extend his lease just under the wire last March. Evan and the freeholder via the management company eventually agreed on an amount of £6,000 . If he had missed the deadline, the price would have become more exhorbitant by a minimum £1,125.
In 2009 we were phoned by Ms Ellie Baker who, having owned a one bedroom apartment in Hermitage in September 2010. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparable homes in Hermitage with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £65 billed monthly. The lease ran out on 1 November 2093. Given that there were 68 years left we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.
Last year we were contacted by Dr Francesca Bertrand , who was assigned a lease of a purpose-built apartment in Hermitage in March 2004. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar flats in Hermitage with 100 year plus lease were valued around £208,600. The mid-range ground rent payable was £60 collected every twelve months. The lease terminated in 2082. Given that there were 57 years remaining we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of expenses.