Hayes leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Hayes will mostly 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 some situations you may not qualify. There are also strict timetables and steps to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold properties in Hayes with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Hayes,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hayes valuers.
Milo was the the leasehold owner of a conversion flat in Hayes being sold with a lease of fraction over 72 years left. Milo informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Milo to exercise his statutory right. Milo obtained expert advice and secured satisfactory deal informally and sell the flat.
Last Christmas we were called by Dr Eliot Moore , who moved into a first floor flat in Hayes in June 1995. The question was if we could approximate the price could be for a 90 year extension to my lease. Similar homes in Hayes with a long lease were in the region of £210,000. The mid-range ground rent payable was £50 billed every twelve months. The lease came to a finish on 7 July 2105. Considering the 80 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Hayes residence 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 term as at the valuation date was 69 years.