Hayes leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the existing lease drops under eighty years - otherwise a higher amount will be due. Leasehold owners in Hayes will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Retaining our service will provide you better control over the value of your Hayes leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Andrew, came very close to the eighty-year threshold with the lease on his two bedroom apartment in Hayes. In buying his home twenty years ago, the length of the lease was of no relevance. Luckily, it dawned on him that he would imminently be paying way over the odds for a lease extension. Andrew was able to extend his lease at the eleventh hour last April. Andrew and the landlord in the end settled on the final figure of £5,000 . If he had missed the deadline, the figure would have become more exhorbitant by at least £875.
Dr William Fournier purchased a one bedroom flat in Hayes in October 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Hayes with 100 year plus lease were valued around £233,200. The average amount of ground rent was £60 billed monthly. The lease ran out on 8 February 2086. Considering the 61 years outstanding we estimated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Hayes property is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case was in relation to 2 flats. The unexpired lease term was 69 years.