Hale Barns leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Hale Barns enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Hale Barns you must see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancers that we work with undertake Hale Barns lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Luke, came dangerously near to the 80-year threshold with the lease on his leasehold flat in Hale Barns. In buying his property two decades ago, the lease term was of little concern. Thankfully, he recognised he needed to take steps soon on Extending the lease. Luke arranged for a lease extension just ahead of time in January. Luke and the freeholder in the end settled on a premium of £5,500 . If the lease had gone below 80 years, the premium would have gone up by at least £1,075.
Dr U Gómez took over the lease of a one bedroom apartment in Hale Barns in May 1996. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Hale Barns with an extended lease were in the region of £260,000. The average amount of ground rent was £50 collected annually. The lease ran out in 2098. Having 72 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
Last July we were e-mailed by Dr I Ali , who completed a one bedroom flat in Hale Barns in June 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable flats in Hale Barns with a long lease were valued around £261,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease ended on 28 November 2078. Considering the 52 years left we approximated the premium to the landlord for the lease extension to be between £39,000 and £45,000 not including professional charges.