Hale Barns leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Hale Barns residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hale Barns you really ought to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Hale Barns can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Hale Barns lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted negotiations with the landlord of her garden flat in Hale Barns, Louise initiated the lease extension process just as the lease was approaching the crucial eighty-year deadline. The lease extension completed in February 2008. The landlord’s costs were kept to an absolute minimum.
In 2011 we were e-mailed by Dr Jamie Torres who, having took over the lease of a one bedroom apartment in Hale Barns in July 1997. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable flats in Hale Barns with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 invoiced quarterly. The lease came to a finish in 2103. Given that there were 78 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.
In 2009 we were phoned by Mr Dylan Stewart who, having owned a studio apartment in Hale Barns in September 1999. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative homes in Hale Barns with a long lease were valued around £191,000. The mid-range amount of ground rent was £65 collected per annum. The lease ran out in 2083. Having 58 years as a residual term we calculated the premium to the landlord for the lease extension to be between £23,800 and £27,400 not including legals.