The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Hale End may extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Hale End lease extension. Shelving that expense today simply escalates the amount you will ultimately be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hale End can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Hale End lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy correspondence with the landlord of her one bedroom flat in Hale End, Lauren initiated the lease extension process just as the lease was approaching the critical 80-year threshold. The legal work completed in April 2005. The landlord’s charges were restricted to under 450 GBP.
Last Spring we were e-mailed by Mr J Ali , who took over the lease of a one bedroom flat in Hale End in July 2009. We are asked if we could approximate the premium would be to extend the lease by 90 years. Similar premises in Hale End with a long lease were in the region of £295,000. The mid-range ground rent payable was £45 billed every twelve months. The lease elapsed in 2100. Taking into account 74 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
In 2010 we were called by Mr Joshua Bailey who, having bought a first floor flat in Hale End in March 2008. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Identical properties in Hale End with an extended lease were in the region of £248,000. The average amount of ground rent was £65 collected every twelve months. The lease expired in 2089. Taking into account 63 years as a residual term we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus costs.