Hainault leases on domestic deteriorating in value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Hainault will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Engaging our service gives you enhanced control over the value of your Hainault leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the landlord of her basement flat in Hainault, Elizabeth commenced the lease extension process as the 80 year deadline was quickly approaching. The transaction was concluded in June 2006. The landlord’s costs were restricted to about six hundred pounds.
Ms I Walker acquired a studio apartment in Hainault in July 2008. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Identical properties in Hainault with an extended lease were in the region of £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease expiry date was in 2098. Considering the 72 years left we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.
An example of a Freehold Enfranchisement decision for a Hainault premises is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case was in relation to 2 flats. The remaining number of years on the lease was 69.26 years.