Haslington leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Haslington will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and procedures to follow once the process has started so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Haslington 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.
Off the back of lengthy negotiations with the landlord of her garden apartment in Haslington, Georgia started the lease extension process as the 80 year threshold was quickly advancing. The lease extension was concluded in November 2005. The freeholder’s costs were negotiated to slightly above 700 pounds.
Last Winter we were approach by Dr M Lambert , who moved into a studio apartment in Haslington in March 2002. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Haslington with a long lease were worth £285,000. The mid-range ground rent payable was £45 billed annually. The lease terminated on 11 January 2098. Given that there were 72 years left we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
In 2014 we were contacted by Ms Jordan Lambert who, having bought a studio flat in Haslington in March 2000. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable flats in Haslington with a long lease were worth £233,200. The mid-range amount of ground rent was £60 billed monthly. The lease ended in 2087. Considering the 61 years left we calculated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 not including expenses.