Halstead leases on residential properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard 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. Leasehold owners in Halstead will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not be entitled. There are also strict timetables and formalities to follow once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Halstead lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Subsequent to unsuccessful negotiations with the freeholder of her first floor flat in Halstead, Holly initiated the lease extension process as the eighty year mark was fast nearing. The legal work completed in January 2014. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. D González purchased a ground floor flat in Halstead in February 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Identical flats in Halstead with a long lease were in the region of £260,000. The average ground rent payable was £50 collected per annum. The lease terminated in 2097. Given that there were 72 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
Mr and Mrs. Y Bailey was assigned a lease of a purpose-built apartment in Halstead in September 2010. We are asked if we could approximate the price could be to extend the lease by ninety years. Identical premises in Halstead with an extended lease were worth £261,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease came to a finish on 2 March 2077. Taking into account 52 years left we approximated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of costs.