With a domestic leasehold property in Hockley, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are fewer than 80 years remaining. Leasehold owners in Hockley with a lease nearing 81 years remaining should seriously think of extending it without delay. When the lease term has under eighty years outstanding, under the current Act the freeholder can calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Hockley with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Hockley can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
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 dealing with Hockley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy correspondence with the landlord of her garden flat in Hockley, Rachael initiated the lease extension process as the eighty year mark was fast coming. The lease extension was finalised in May 2013. The landlord’s charges were kept to an absolute minimum.
In 2014 we were e-mailed by Ms G Vincent who, having acquired a one bedroom apartment in Hockley in July 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Comparative homes in Hockley with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed annually. The lease concluded on 1 October 2099. Given that there were 75 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
Last Spring we were contacted by Mr Harry Reed , who was assigned a lease of a ground floor apartment in Hockley in July 2002. The question was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar homes in Hockley with 100 year plus lease were in the region of £173,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease elapsed in 2079. Taking into account 55 years remaining we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus legals.