The nearer a domestic lease in Hulme gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of 125 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending without delay. Most flat owners in Hulme will meet the qualifying criteria; however a conveyancer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Hulme with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Chelsea 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Hulme leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the freeholder of her ground floor apartment in Hulme, Gemma initiated the lease extension process just as the lease was approaching the crucial eighty-year mark. The legal work completed in March 2005. The landlord’s costs were negotiated to a tad over 600 GBP.
In 2012 we were contacted by Dr Mollie White who, having completed a basement flat in Hulme in May 1999. We are asked if we could approximate the price would be to extend the lease by an additional years. Similar premises in Hulme with a long lease were valued around £295,000. The average ground rent payable was £45 collected quarterly. The lease finished on 21 November 2099. Taking into account 74 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
Last Autumn we were called by Mr and Mrs. W Adams , who was assigned a lease of a first floor apartment in Hulme in March 2003. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable properties in Hulme with 100 year plus lease were worth £243,000. The mid-range amount of ground rent was £65 collected quarterly. The lease finished on 6 February 2088. Given that there were 63 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus expenses.