When it comes to domestic leasehold premises in Hale Barns, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are fewer than 80 years left. Anyone in Hale Barns with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has under eighty years outstanding, under the relevant statute the landlord is entitled to calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Hale Barns with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Hale Barns can be a difficult process. We recommend you secure professional help from a lawyer and valuer 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 Hale Barns 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 negotiations with the landlord of her basement flat in Hale Barns, Chelsea commenced the lease extension process as the 80 year threshold was quickly advancing. The legal work was concluded in July 2014. The landlord’s charges were kept to an absolute minimum.
In 2014 we were e-mailed by Mr and Mrs. D Petit who, having purchased a studio flat in Hale Barns in July 2001. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative premises in Hale Barns with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 collected per annum. The lease lapsed in 2097. Given that there were 71 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
Dr C Brooks acquired a one bedroom flat in Hale Barns in March 2010. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable properties in Hale Barns with 100 year plus lease were worth £254,200. The average ground rent payable was £60 collected per annum. The lease came to a finish in 2077. Given that there were 51 years as a residual term we estimated the premium to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of professional charges.