Haydon Bridge leases on residential properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Haydon Bridge will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain circumstances you may not qualify. There are also strict timetables and steps to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Haydon Bridge with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Haydon Bridge can be a difficult process. We recommend you obtain professional help from a lawyer 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 dealing with Haydon Bridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Benjamin was the the leasehold proprietor of a 2 bedroom flat in Haydon Bridge on the market with a lease of fraction over sixty years outstanding. Benjamin informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Benjamin to exercise his statutory right. Benjamin obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Dr Finn Carter was assigned a lease of a garden flat in Haydon Bridge in October 2010. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical residencies in Haydon Bridge with a long lease were worth £261,600. The average amount of ground rent was £60 billed every twelve months. The lease ran out in 2077. Given that there were 52 years remaining we estimated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 not including fees.
Mr and Mrs. S Lewis owned a newly refurbished flat in Haydon Bridge in May 2012. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative properties in Haydon Bridge with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced annually. The lease finished in 2088. Considering the 63 years outstanding we estimated the premium to the landlord for the lease extension to be within £17,100 and £19,800 plus professional charges.