Haydon Bridge leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Haydon Bridge tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Haydon Bridge you should check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Haydon Bridge leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is put in place without delay
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to 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. |
| 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. |
| Lloyds TSB Scotland | 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. |
The lawyers that we work with undertake Haydon Bridge 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 lawyer we work with provide it.
Trailing lengthy correspondence with the landlord of her ground floor apartment in Haydon Bridge, Harriet initiated the lease extension process just as her lease was nearing the crucial 80-year mark. The lease extension was concluded in June 2012. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. C Simon owned a purpose-built apartment in Haydon Bridge in September 1998. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative properties in Haydon Bridge with an extended lease were valued around £290,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease expiry date was in 2105. Considering the 80 years remaining we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.
Mrs N Carter moved into a basement apartment in Haydon Bridge in February 1995. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable premises in Haydon Bridge with a long lease were valued about £200,800. The average ground rent payable was £65 billed every twelve months. The lease elapsed in 2085. Taking into account 60 years outstanding we estimated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 plus costs.