There is no doubt about it a leasehold property in Haslington is a wasting asset as a result of the shortening lease. If the lease has, in excess of 99 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending without delay. Many flat owners in Haslington will qualify for this right; that being said a conveyancer will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Haslington with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service will provide you enhanced control over the value of your Haslington leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Archie owned a conversion apartment in Haslington on the market with a lease of just over 59 years unexpired. Archie informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Archie to invoke his statutory right. Archie procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2014 we were e-mailed by Mr Riley Jones who, having was assigned a lease of a garden apartment in Haslington in January 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Similar premises in Haslington with an extended lease were worth £267,600. The mid-range amount of ground rent was £65 collected yearly. The lease finished in 2093. Considering the 67 years unexpired we estimated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 not including professional charges.
Mr and Mrs. L Morgan purchased a first floor flat in Haslington in November 2006. The dilemma was if we could approximate the price could be to extend the lease by ninety years. Comparable homes in Haslington with an extended lease were in the region of £206,200. The mid-range ground rent payable was £55 collected per annum. The lease elapsed on 4 October 2082. Considering the 56 years outstanding we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus legals.