Hagley leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Hagley will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some cases you may not be entitled. There are also strict timetables and steps to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold properties in Hagley with over 100 years left 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Hagley,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hagley valuers.
Off the back of unsuccessful discussions with the landlord of her one bedroom flat in Hagley, Kirsty commenced the lease extension process just as the lease was nearing the critical 80-year mark. The transaction was concluded in August 2007. The freeholder’s fees were negotiated to about 600 pounds.
Last Winter we were contacted by Mr and Mrs. P Torres , who was assigned a lease of a one bedroom flat in Hagley in November 2007. The dilemma was if we could estimate the price would likely be to extend the lease by 90 years. Similar properties in Hagley with a long lease were worth £250,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished on 24 March 2095. Having 70 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
Mr and Mrs. H Lambert acquired a purpose-built flat in Hagley in January 1999. The question was if we could estimate the premium would be for a 90 year lease extension. Comparable homes in Hagley with 100 year plus lease were worth £246,800. The mid-range amount of ground rent was £60 billed per annum. The lease came to a finish on 15 June 2075. Given that there were 50 years remaining we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including fees.