Hook leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Hook will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has started so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Hook 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 in-depth market knowledge procuring Hook lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Stanley, started to get close to the 80-year mark with the lease on his purpose- built apartment in Hook. In buying his property 19 years ago, the unexpired term was of no interest. Luckily, he became aware that he needed to take steps soon on a lease extension. Stanley arranged for a lease extension just ahead of time in September. Stanley and the freeholder ultimately agreed on the final figure of £5,500 . If he had missed the deadline, the amount would have become more exhorbitant by a minimum £1,100.
Last Christmas we were contacted by Dr Grace Gunderson , who was assigned a lease of a purpose-built apartment in Hook in January 2009. The dilemma was if we could approximate the price could be to extend the lease by an additional years. Similar residencies in Hook with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced annually. The lease came to a finish on 4 August 2102. Given that there were 77 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.
An example of a Lease Extension case for a Hook premises is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case related to 1 flat.