It’s a harsh truth that a Haydock residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Haydock property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term drops under 80 years, you will end up paying half 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 extra value that a lease extension will add the property Most leasehold owners in Haydock will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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. |
| 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 |
Using our service will provide you increased control over the value of your Haydock leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the freeholder of her two bedroom apartment in Haydock, Natasha initiated the lease extension process as the 80 year deadline was quickly approaching. The lease extension was finalised in January 2007. The landlord’s fees were negotiated to about 700 pounds.
Last Christmas we were called by Dr L Alexander , who took over the lease of a garden apartment in Haydock in March 2002. The question was if we could estimate the price would likely be to extend the lease by a further 90 years. Identical premises in Haydock with 100 year plus lease were worth £220,400. The average amount of ground rent was £45 billed yearly. The lease expired on 4 June 2090. Having 64 years left we estimated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 not including legals.
Last Winter we were e-mailed by Dr O Bell , who completed a ground floor flat in Haydock in February 2007. The question was if we could approximate the premium could be for a ninety year extension to my lease. Similar properties in Haydock with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease came to a finish in 2101. Having 75 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.