The market value of a leasehold property in Haydon Bridge depends on how many years the lease has remaining. If it is close to or less than eighty years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be concluded well before the eighty year mark. Leasehold Reform legislation enables Haydon Bridge qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Haydon Bridge with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.
Connor was the the leasehold owner of a 2 bedroom apartment in Haydon Bridge being marketed with a lease of a few days over fifty eight years unexpired. Connor informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Connor to invoke his statutory right. Connor obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2009 we were phoned by Mr and Mrs. J Lefebvre who, having acquired a recently refurbished flat in Haydon Bridge in February 2003. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical properties in Haydon Bridge with 100 year plus lease were valued around £193,400. The average ground rent payable was £65 collected monthly. The lease came to a finish in 2085. Considering the 59 years remaining we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including expenses.
In 2012 we were called by Ms N Jones who, having moved into a one bedroom apartment in Haydon Bridge in May 1998. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparative residencies in Haydon Bridge with 100 year plus lease were worth £255,000. The average ground rent payable was £50 collected quarterly. The lease ended on 11 May 2096. Having 70 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 plus fees.