Halstead leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Halstead enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Halstead you should check if your lease has between seventy and ninety years left. There are good reasons why a Halstead flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Lease extensions in Halstead can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in lease extensions.
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 procuring Halstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful discussions with the freeholder of her studio apartment in Halstead, Ella initiated the lease extension process as the eighty year threshold was rapidly nearing. The lease extension was finalised in September 2009. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were contacted by Mr and Mrs. J Morel who, having took over the lease of a studio flat in Halstead in July 1996. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar premises in Halstead with a long lease were worth £260,000. The mid-range ground rent payable was £50 collected yearly. The lease elapsed on 17 February 2098. Having 72 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.
In 2013 we were contacted by Dr Millie David who, having owned a purpose-built apartment in Halstead in October 2007. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Similar flats in Halstead with a long lease were valued about £261,600. The average amount of ground rent was £60 billed monthly. The lease lapsed in 2078. Taking into account 52 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of fees.