Haydon Bridge leases on domestic properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the current lease falls lower than eighty years - otherwise a higher premium will be due. Flat owners in Haydon Bridge will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain circumstances you may not qualify. There are prescribed deadlines and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Haydon Bridge with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. 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 |
|---|---|
| Bank of Scotland | 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Retaining our service gives you enhanced control over the value of your Haydon Bridge leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Tyler, started to get close to the 80-year mark with the lease on his purpose- built flat in Haydon Bridge. Having purchased his home 18 years ago, the lease term was of no concern. Luckily, he became aware that he would imminently be paying an inflated amount for Extending the lease. Tyler was able to extend his lease just in the nick of time in September. Tyler and the freeholder subsequently settled on a premium of £5,000 . If the lease had slid below 80 years, the figure would have become more exhorbitant by at least £875.
In 2011 we were called by Mr and Mrs. I Allen who, having took over the lease of a first floor flat in Haydon Bridge in June 1999. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable premises in Haydon Bridge with an extended lease were in the region of £208,200. The average amount of ground rent was £65 invoiced quarterly. The lease finished on 16 March 2087. Given that there were 61 years unexpired we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including expenses.
In 2011 we were e-mailed by Ms G Torres who, having completed a recently refurbished apartment in Haydon Bridge in October 2008. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical flats in Haydon Bridge with an extended lease were worth £260,000. The average ground rent payable was £50 invoiced every twelve months. The lease lapsed in 2098. Considering the 72 years left we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.