The market value of Halstead leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Barnsley Building Society | |
| Skipton Building Society | |
| TSB |
The conveyancing solicitors that we work with handle 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.
Half a year ago Rory, started to get near to the eighty-year threshold with the lease on his studio apartment in Halstead. Having bought his home twenty years previously, the unexpired term was of little concern. As luck would have it, it dawned on him that he would soon be paying an escalated premium for a lease extension. Rory arranged for a lease extension just under the wire last April. Rory and the freeholder in the end settled on a premium of £5,000 . If he not met the deadline, the sum would have gone up by at least £900.
Mr and Mrs. T Nelson acquired a one bedroom apartment in Halstead in February 2002. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar properties in Halstead with a long lease were worth £264,000. The mid-range amount of ground rent was £60 billed annually. The lease came to a finish on 13 January 2079. Having 53 years unexpired we approximated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 plus fees.
Last Christmas we were called by Mr and Mrs. H Phillips , who completed a first floor flat in Halstead in August 2005. The dilemma was if we could approximate the price would be for a 90 year lease extension. Similar residencies in Halstead with 100 year plus lease were worth £225,400. The mid-range ground rent payable was £45 invoiced annually. The lease end date was in 2090. Considering the 64 years left we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of costs.