It’s a harsh certainty that a Hale Barns residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Hale Barns property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining drops under 80 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 the property Most flat owners in Hale Barns will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Hale Barns with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Hale Barns leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Ibrahim, came dangerously close to the 80-year mark with the lease on his ground floor flat in Hale Barns. In buying his home two decades ago, the lease term was of little concern. Thankfully, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Ibrahim arranged for a lease extension just under the wire last August. Ibrahim and the freeholder eventually agreed on a premium of £5,500 . If the lease had dipped lower than 80 years, the premium would have become more costly by at least £925.
In 2014 we were e-mailed by Mrs J Smith who, having took over the lease of a purpose-built apartment in Hale Barns in January 2007. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative residencies in Hale Barns with a long lease were in the region of £232,800. The mid-range amount of ground rent was £45 collected annually. The lease ended in 2090. Taking into account 65 years outstanding we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.
Last month we were called by Dr P Moreau , who was assigned a lease of a first floor flat in Hale Barns in November 1995. We are asked if we could estimate the price could be for a 90 year lease extension. Similar flats in Hale Barns with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 collected quarterly. The lease end date was on 10 August 2101. Taking into account 76 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.