Halesworth leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Halesworth will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not be entitled. There are also strict deadlines and steps to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Halesworth with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Halesworth,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Halesworth valuers.
Sebastian owned a high value flat in Halesworth on the market with a lease of fraction over 59 years unexpired. Sebastian informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Sebastian to invoke his statutory right. Sebastian procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
In 2013 we were phoned by Mr and Mrs. V Bailey who, having owned a newly refurbished apartment in Halesworth in March 2001. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar flats in Halesworth with 100 year plus lease were valued about £233,200. The average ground rent payable was £60 invoiced monthly. The lease ended in 2087. Having 61 years left we calculated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 plus fees.
In 2012 we were e-mailed by Mrs Mollie Cook who, having completed a one bedroom flat in Halesworth in February 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparable residencies in Halesworth with an extended lease were worth £171,800. The mid-range amount of ground rent was £55 collected quarterly. The lease elapsed on 13 June 2076. Considering the 50 years left we approximated the premium to the landlord to extend the lease to be within £33,300 and £38,400 plus legals.