Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Hale End. Clearly, the length of lease left shortens over time. This may pass by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Hale End have the legal entitlement to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. You should give due deliberation before delaying your Hale End lease extension. Holding off the cost now simply increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Hale End,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hale End valuers.
Off the back of lengthy negotiations with the freeholder of her garden apartment in Hale End, Bethany commenced the lease extension process as the 80 year mark was quickly coming. The lease extension was concluded in February 2005. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were e-mailed by Mr and Mrs. K Rivera who, having completed a purpose-built apartment in Hale End in April 2008. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparative flats in Hale End with an extended lease were in the region of £189,000. The mid-range ground rent payable was £55 invoiced annually. The lease concluded in 2079. Considering the 53 years remaining we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus legals.
Mr Jack Davis purchased a purpose-built apartment in Hale End in August 2011. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical properties in Hale End with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 invoiced every twelve months. The lease lapsed on 6 January 2099. Having 73 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.