Hainault leases on domestic deteriorating in value. if your lease has about 90 years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the current lease falls below eighty years - otherwise a higher premium will be due. Flat owners in Hainault will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not qualify. There are prescribed timetables and steps to follow once the process has started so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a landlord in Hainault,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hainault valuers.
Following unsuccessful correspondence with the freeholder of her purpose-built apartment in Hainault, Freya initiated the lease extension process just as her lease was approaching the all-important 80-year threshold. The lease extension completed in August 2005. The freeholder’s costs were restricted to approximately 500 GBP.
Last Winter we were contacted by Mrs P Mason , who purchased a basement flat in Hainault in September 2009. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable properties in Hainault with 100 year plus lease were worth £267,600. The mid-range amount of ground rent was £65 invoiced quarterly. The lease expiry date was on 27 March 2093. Given that there were 67 years outstanding we calculated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Hainault flat 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 affected 2 flats. The number of years remaining on the existing lease(s) was 69.26 years.