Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Haydon Bridge. Clearly, the period of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Haydon Bridge have the right to extend the lease for a further 90 years in accordance with legislation. You should give due deliberation before putting off your Haydon Bridge lease extension. Putting off that expense now simply increases the price you will ultimately have to pay to extend your lease
Leasehold premises in Haydon Bridge with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| Yorkshire 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. |
Lease extensions in Haydon Bridge can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Haydon Bridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Jasper, came precariously close to the eighty-year mark with the lease on his studio flat in Haydon Bridge. In buying his flat 18 years ago, the unexpired term was of little bearing. Fortunately, he noticed he would soon be paying an escalated premium for Extending the lease. Jasper arranged for a lease extension just under the wire in May. Jasper and the landlord ultimately settled on a premium of £5,500 . If the lease had dropped lower than 80 years, the sum would have increased by a minimum £1,100.
Dr Kai Rodríguez was assigned a lease of a first floor flat in Haydon Bridge in June 2010. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Identical homes in Haydon Bridge with 100 year plus lease were worth £245,000. The average ground rent payable was £50 invoiced annually. The lease lapsed in 2093. Considering the 68 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
Last Autumn we were approach by Mrs Samantha Lambert , who completed a recently refurbished flat in Haydon Bridge in January 1997. The question was if we could approximate the price would likely be for a ninety year lease extension. Identical homes in Haydon Bridge with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 collected per annum. The lease ran out in 2104. Given that there were 79 years left we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.