Hall Green leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Hall Green residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hall Green you should investigate if your lease has between seventy and ninety years left. There are good reasons why a Hall Green leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is put in place without delay
Leasehold residencies in Hall Green with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Using our service gives you better control over the value of your Hall Green leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Alexander, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Hall Green. In buying his property twenty years ago, the length of the lease was of minimal significance. Fortunately, he noticed he needed to take steps soon on Extending the lease. Alexander was able to extend his lease at the eleventh hour last January. Alexander and the freeholder eventually agreed on sum of £5,500 . If he had missed the deadline, the amount would have increased by a minimum £1,025.
In 2014 we were e-mailed by Dr Connor Roberts who, having owned a purpose-built flat in Hall Green in February 2006. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparative premises in Hall Green with 100 year plus lease were valued around £260,200. The mid-range ground rent payable was £65 collected annually. The lease lapsed in 2092. Taking into account 66 years unexpired we approximated the premium to the landlord for the lease extension to be between £15,200 and £17,600 plus professional charges.
In 2014 we were e-mailed by Dr Aimee Murphy who, having completed a basement flat in Hall Green in May 2010. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparative flats in Hall Green with an extended lease were valued around £198,800. The average amount of ground rent was £55 collected every twelve months. The lease ran out in 2081. Taking into account 55 years left we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 not including costs.