It’s a harsh truth that a Hale residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Hale property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining dips below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Hale will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold properties in Hale with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Halifax | |
| National Westminster Bank | |
| Yorkshire Building Society |
The conveyancers that we work with undertake Hale 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 lawyer we work with provide it.
Muhammad owned a conversion flat in Hale on the market with a lease of fraction over 61 years outstanding. Muhammad informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Mrs Anna Johnson moved into a studio apartment in Hale in March 1998. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Identical premises in Hale with 100 year plus lease were worth £198,800. The average amount of ground rent was £55 billed annually. The lease ended on 10 July 2081. Given that there were 55 years left we approximated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 not including professional charges.
Last year we were e-mailed by Dr V Morgan , who purchased a studio flat in Hale in April 1995. The dilemma was if we could approximate the price could be to extend the lease by ninety years. Similar homes in Hale with 100 year plus lease were valued around £295,000. The mid-range ground rent payable was £50 collected per annum. The lease came to a finish on 11 May 2101. Considering the 75 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.