With a long leasehold property in Halstead, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Residents in Halstead with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once the lease term has fewer than 80 years remaining, under the relevant statute the freeholder is entitled to calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Halstead with in excess of 100 years left 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The lawyers 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 lawyer we work with provide it.
Jake was the the leasehold proprietor of a high value apartment in Halstead being marketed with a lease of a little over sixty years remaining. Jake informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jake to exercise his statutory right. Jake procured expert advice and secured satisfactory resolution informally and readily saleable.
In 2013 we were called by Dr L King who, having acquired a ground floor flat in Halstead in July 1995. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Similar premises in Halstead with an extended lease were in the region of £280,000. The average ground rent payable was £55 invoiced quarterly. The lease elapsed on 10 October 2104. Considering the 78 years left we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.
Mr Leon Walker bought a ground floor flat in Halstead in July 2008. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar homes in Halstead with a long lease were in the region of £191,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease expiry date was in 2084. Given that there were 58 years remaining we calculated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus costs.