Hale End leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay half 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 Hale End will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Hale End lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Nathan was the the leasehold owner of a conversion apartment in Hale End being sold with a lease of fraction over 59 years left. Nathan informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Nathan to exercise his statutory right. Nathan procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Winter we were approach by Mr F Rivera , who acquired a recently refurbished flat in Hale End in February 1997. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Identical properties in Hale End with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease termination date was in 2094. Having 68 years left we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.
Last Autumn we were approach by Mr and Mrs. Y Bertrand , who moved into a ground floor flat in Hale End in March 2008. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Similar premises in Hale End with 100 year plus lease were worth £213,600. The mid-range ground rent payable was £60 invoiced annually. The lease ended in 2083. Given that there were 57 years left we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.