Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Hale. Inevitably, the length of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the residence needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Hale have the right to extend the lease for a further ninety years under statute. Please give careful consideration before putting off your Hale lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors 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 conveyancing solicitor we work with provide it.
After lengthy discussions with the freeholder of her leasehold flat in Hale, Charlotte started the lease extension process just as the lease was nearing the critical 80-year threshold. The lease extension was concluded in February 2011. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were approached by Dr Y Martínez who, having bought a purpose-built flat in Hale in November 2006. The question was if we could estimate the price could be for a 90 year extension to my lease. Comparable premises in Hale with an extended lease were in the region of £240,600. The average amount of ground rent was £60 invoiced yearly. The lease ended in 2088. Considering the 62 years remaining we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including legals.
Last month we were phoned by Mr Leon Ricardo , who moved into a one bedroom flat in Hale in November 1999. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Similar properties in Hale with an extended lease were valued around £174,200. The average ground rent payable was £55 billed yearly. The lease finished in 2077. Having 51 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of costs.