For those whose Hale flat is held on a long lease, our message is clear – if no remedial action is taken, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension.
Leasehold properties in Hale with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 can be a difficult process. We recommend you procure professional help from a lawyer and valuer 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 dealing with Hale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of unsuccessful negotiations with the landlord of her basement apartment in Hale, Imogen initiated the lease extension process just as the lease was approaching the critical eighty-year threshold. The lease extension was finalised in October 2011. The freeholder’s fees were kept to an absolute minimum.
Last year we were phoned by Mr K Phillips , who owned a ground floor apartment in Hale in September 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable premises in Hale with an extended lease were in the region of £166,800. The mid-range amount of ground rent was £50 billed quarterly. The lease concluded in 2076. Given that there were 50 years left we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including fees.
Last Spring we were e-mailed by Mr K Bennett , who owned a one bedroom apartment in Hale in January 2001. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar homes in Hale with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 billed yearly. The lease concluded on 28 June 2096. Having 70 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.