As the the remaining lease term of a Halstead residential lease lessens so does its value and therefore the value of your property. Where the lease has, more than 125 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Halstead will qualify for this right; however a conveyancing solicitor can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Halstead with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Halstead,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Halstead valuers.
Evan was the the leasehold proprietor of a conversion apartment in Halstead on the market with a lease of a little over fifty eight years left. Evan on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Evan to exercise his statutory right. Evan obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last Christmas we were approach by Mrs Erin Petit , who completed a first floor flat in Halstead in September 2004. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Identical flats in Halstead with a long lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease expired on 25 June 2100. Taking into account 74 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.
Mr Aarav Mitchell took over the lease of a ground floor apartment in Halstead in January 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical residencies in Halstead with a long lease were in the region of £166,400. The average ground rent payable was £60 billed per annum. The lease finished in 2080. Having 54 years unexpired we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus expenses.