Halstead leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Halstead will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain situations you may not be entitled. There are also strict deadlines and formalities to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Halstead with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Halstead can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 dealing with Halstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Isaac owned a high value apartment in Halstead being marketed with a lease of a few days over 72 years remaining. Isaac on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Isaac to exercise his statutory right. Isaac procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Spring we were contacted by Mr A Fournier , who took over the lease of a one bedroom apartment in Halstead in June 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparative residencies in Halstead with a long lease were valued about £225,400. The mid-range ground rent payable was £45 invoiced annually. The lease ended in 2088. Taking into account 64 years as a residual term we approximated the premium to the landlord for the lease extension to be between £15,200 and £17,600 not including fees.
Last Christmas we were phoned by Dr P Green , who moved into a ground floor flat in Halstead in July 2002. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative flats in Halstead with a long lease were in the region of £270,000. The average ground rent payable was £55 billed per annum. The lease expired in 2099. Given that there were 75 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.