Hale Barns leases on domestic deteriorating in value. if your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Hale Barns will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain cases you may not be entitled. There are prescribed timetables and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 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 |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
Jude owned a high value flat in Hale Barns being marketed with a lease of just over 59 years outstanding. Jude informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jude to exercise his statutory right. Jude procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Mr Henry Martínez bought a first floor flat in Hale Barns in March 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Identical premises in Hale Barns with 100 year plus lease were in the region of £264,000. The mid-range ground rent payable was £60 billed per annum. The lease concluded in 2078. Taking into account 53 years outstanding we estimated the premium to the landlord to extend the lease to be between £37,100 and £42,800 exclusive of legals.
Mr and Mrs. F Collins completed a garden apartment in Hale Barns in March 1997. The question was if we could approximate the premium could be to prolong the lease by ninety years. Comparative homes in Hale Barns with an extended lease were valued around £225,400. The average ground rent payable was £45 billed per annum. The lease concluded in 2089. Considering the 64 years as a residual term we estimated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus costs.