Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Halstead. Inevitably, the period of lease remaining reduces over time. This is often ignored and only raises itself as an issue when the residence has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Halstead have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give careful deliberation before delaying your Halstead lease extension. Holding off that expense now likely increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Halstead with over 100 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 to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Halstead can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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.
In the wake of eight months of protracted negotiations with the freeholder of her two bedroom flat in Halstead, Chantelle initiated the lease extension process just as the lease was approaching the all-important 80-year threshold. The transaction completed in March 2009. The landlord’s fees were kept to an absolute minimum.
Last Christmas we were e-mailed by Mr and Mrs. L Morgan , who completed a one bedroom apartment in Halstead in September 2004. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparative properties in Halstead with a long lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease ended in 2096. Taking into account 70 years remaining we calculated the premium to the landlord for the lease extension to be within £10,500 and £12,000 plus fees.
Ms Mollie Bailey owned a ground floor apartment in Halstead in May 1997. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Comparative flats in Halstead with an extended lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced monthly. The lease expired on 3 February 2076. Considering the 50 years left we estimated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 plus costs.