Hayes leases on residential deteriorating in value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Hayes will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not be entitled. 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.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Hayes 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.
Mason owned a 2 bedroom flat in Hayes being marketed with a lease of a little over sixty years remaining. Mason on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Mason to exercise his statutory right. Mason procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
In 2013 we were approached by Mr and Mrs. T Lambert who, having purchased a purpose-built apartment in Hayes in April 2000. The dilemma was if we could approximate the premium would be to extend the lease by ninety years. Similar premises in Hayes with a long lease were valued about £275,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease terminated on 10 May 2093. Taking into account 68 years remaining we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Hayes flat 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.