For those whose Hale End flat is held on a long lease, our message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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. |
Lease extensions in Hale End can be a difficult process. We recommend you obtain professional help from a conveyancer 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 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.
Two years ago Kyle, started to get near to the 80-year mark with the lease on his basement flat in Hale End. Having bought his property two decades ago, the unexpired term was of minimal interest. Thankfully, he realised he needed to take action soon on Extending the lease. Kyle extended the lease just under the wire in May. Kyle and the landlord ultimately settled on sum of £5,000 . If he failed to meet the deadline, the figure would have become more costly by a minimum £1,025.
Last Autumn we were called by Ms Isabella Morris , who purchased a purpose-built apartment in Hale End in November 2008. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Comparable residencies in Hale End with a long lease were worth £267,600. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish in 2092. Given that there were 67 years left we estimated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 plus expenses.
In 2013 we were e-mailed by Mr Liam Bell who, having was assigned a lease of a one bedroom flat in Hale End in February 2002. The question was if we could estimate the price could be for a 90 year extension to my lease. Similar premises in Hale End with a long lease were valued around £206,200. The mid-range amount of ground rent was £60 billed yearly. The lease ran out in 2081. Given that there were 56 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of fees.