There is no doubt about it a leasehold flat or house in Halstead is a wasting asset as a result of the shortening lease. If the residual term has, beyond 125 years remaining then this decrease may be fractional however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. The majority of flat owners in Halstead will qualify for this right; however a conveyancing solicitor should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Halstead with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Engaging our service gives you better control over the value of your Halstead leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
George owned a high value flat in Halstead on the market with a lease of just over sixty years remaining. George on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be due on a lease extension were George to exercise his statutory right. George obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr Caleb Alexander bought a basement flat in Halstead in August 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Halstead with a long lease were valued around £250,000. The mid-range ground rent payable was £50 invoiced monthly. The lease concluded in 2095. Taking into account 69 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
Mr and Mrs. P Vincent took over the lease of a ground floor flat in Halstead in February 2008. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable homes in Halstead with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £60 billed quarterly. The lease termination date was in 2106. Taking into account 80 years left we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.