Halstead leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Halstead residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Halstead you must investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Halstead leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to 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; |
| 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. |
| 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 Halstead can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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.
Jayden was the the leasehold proprietor of a high value flat in Halstead on the market with a lease of just over 59 years remaining. Jayden informally approached his landlord a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jayden to invoke his statutory right. Jayden procured expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2013 we were approached by Mrs Phoebe Wright who, having bought a ground floor apartment in Halstead in June 2008. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical residencies in Halstead with an extended lease were worth £270,000. The average amount of ground rent was £55 billed annually. The lease terminated on 5 May 2100. Considering the 75 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.
Mr R Richardson owned a one bedroom apartment in Halstead in January 2009. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Halstead with a long lease were worth £173,800. The average ground rent payable was £60 invoiced quarterly. The lease lapsed on 22 February 2080. Having 55 years left we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of fees.