It’s a harsh certainty that a Hawarden residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Hawarden property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term drops below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Hawarden will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service gives you enhanced control over the value of your Hawarden leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the freeholder of her purpose-built apartment in Hawarden, Louise initiated the lease extension process just as the lease was nearing the critical eighty-year mark. The transaction was concluded in September 2008. The landlord’s fees were negotiated to slightly above 450 pounds.
Last month we were approach by Ms S Brooks , who purchased a first floor flat in Hawarden in November 2007. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Hawarden with a long lease were worth £280,000. The average ground rent payable was £45 collected quarterly. The lease ran out on 7 May 2096. Given that there were 70 years unexpired we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.
Last Winter we were called by Mrs A Evans , who bought a recently refurbished flat in Hawarden in September 2003. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Identical flats in Hawarden with an extended lease were valued about £223,400. The mid-range amount of ground rent was £60 collected monthly. The lease termination date was in 2085. Given that there were 59 years outstanding we approximated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 not including fees.