The market value of a leasehold property in Hale End is impacted by how long the lease has remaining. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the lease extension process when a lease still has 82 years remaining so that all matters can be addressed prior to the eighty year cut off point. Leasehold Reform legislation enables Hale End qualifying lessees to acquire a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Hale End with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service 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. |
| Lloyds TSB Scotland | 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 secure professional help from a lawyer and surveyor with experience in this area.
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 in-depth market knowledge procuring 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.
Trailing protracted discussions with the freeholder of her studio flat in Hale End, Poppy started the lease extension process just as her lease was coming close to the all-important 80-year deadline. The transaction was finalised in November 2008. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. B Morgan was assigned a lease of a studio apartment in Hale End in August 1997. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative flats in Hale End with an extended lease were valued around £290,000. The average amount of ground rent was £45 invoiced monthly. The lease concluded on 20 June 2098. Given that there were 72 years outstanding we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.
Last Summer we were approach by Ms Francesca Smith , who completed a purpose-built flat in Hale End in April 1995. The question was if we could approximate the price would likely be to extend the lease by 90 years. Similar flats in Hale End with 100 year plus lease were in the region of £233,200. The mid-range ground rent payable was £60 billed monthly. The lease end date was on 11 May 2087. Having 61 years as a residual term we approximated the premium to the landlord for the lease extension to be between £22,800 and £26,400 plus expenses.