Hale Barns leases on residential properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Hale Barns will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not qualify. There are also strict deadlines and procedures to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Irrespective of whether you are a tenant or a freeholder in Hale Barns,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hale Barns valuers.
Last October Harvey, came seriously close to the eighty-year threshold with the lease on his basement apartment in Hale Barns. Having bought his home two decades ago, the length of the lease was of minimal relevance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Harvey extended the lease at the eleventh hour in June. Harvey and the landlord in the end agreed on sum of £5,000 . If he failed to meet the deadline, the figure would have escalated by a minimum £1,025.
Mrs Sarah Williams acquired a newly refurbished flat in Hale Barns in May 2007. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparative residencies in Hale Barns with 100 year plus lease were worth £218,000. The average amount of ground rent was £45 billed per annum. The lease ended on 11 January 2089. Taking into account 63 years as a residual term we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of legals.
Last year we were called by Mrs E Carter , who completed a purpose-built apartment in Hale Barns in September 1999. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Similar premises in Hale Barns with a long lease were worth £270,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease elapsed on 27 September 2100. Having 74 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.