The closer a domestic lease in Halewood nears to zero years unexpired, the more it reduces the value of the property. If the lease has, over 99 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Halewood will qualify for this right; however a conveyancer can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Halewood 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.
Trailing unsuccessful negotiations with the landlord of her purpose-built apartment in Halewood, Lily started the lease extension process just as her lease was approaching the critical eighty-year mark. The transaction completed in February 2010. The freeholder’s fees were kept to an absolute minimum.
Last month we were phoned by Ms Chelsea Khan , who took over the lease of a one bedroom flat in Halewood in May 2005. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative homes in Halewood with 100 year plus lease were in the region of £166,800. The average ground rent payable was £50 invoiced per annum. The lease lapsed on 12 April 2075. Taking into account 50 years unexpired we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus legals.
Last Christmas we were approach by Dr H Watson , who took over the lease of a garden apartment in Halewood in July 2008. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable premises in Halewood with an extended lease were worth £280,000. The average ground rent payable was £45 billed annually. The lease concluded in 2095. Given that there were 70 years left we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.