Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Halstead. Clearly, the term of lease left reduces over time. This is often ignored and only raises itself as an issue when the residence has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Halstead have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give careful deliberation before putting off your Halstead lease extension. Holding off that expense now simply increases the price you will ultimately incur to extend your lease
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Halstead can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in this area.
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.
Off the back of lengthy correspondence with the freeholder of her purpose-built flat in Halstead, Georgia started the lease extension process as the eighty year mark was rapidly nearing. The transaction completed in July 2008. The landlord’s costs were negotiated to approximately 650 pounds.
In 2010 we were called by Dr H Gunderson who, having completed a basement flat in Halstead in November 1999. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative properties in Halstead with 100 year plus lease were worth £210,600. The mid-range ground rent payable was £45 billed per annum. The lease ran out in 2088. Given that there were 62 years unexpired we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 plus fees.
Ms N Norbert purchased a first floor apartment in Halstead in June 2004. The dilemma was if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar flats in Halstead with 100 year plus lease were worth £265,000. The average amount of ground rent was £50 collected monthly. The lease end date was in 2099. Taking into account 73 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.