As the length of the unexpired term of a Hale Barns domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, more than 125 years remaining then this decrease may be of little impact however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Hale Barns will meet the qualifying criteria; nevertheless a conveyancer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Hale Barns with more than one hundred years unexpired 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 home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Santander | |
| TSB |
The conveyancing solicitors 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.
Isaac owned a 2 bedroom apartment in Hale Barns being sold with a lease of just over 72 years unexpired. Isaac on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Isaac to invoke his statutory right. Isaac obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last Christmas we were approach by Mr Teddy Cox , who was assigned a lease of a garden flat in Hale Barns in June 2004. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparative flats in Hale Barns with 100 year plus lease were valued around £270,000. The average ground rent payable was £55 invoiced per annum. The lease lapsed on 10 May 2100. Taking into account 74 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
In 2010 we were phoned by Mr and Mrs. B Rodríguez who, having purchased a first floor apartment in Hale Barns in April 2009. We are asked if we could estimate the price could be to prolong the lease by 90 years. Identical homes in Hale Barns with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 collected per annum. The lease finished on 16 January 2080. Given that there were 54 years left we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of expenses.