The market value of Hayle leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is less than 80 years
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same 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 decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Hayle leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the freeholder of her studio apartment in Hayle, Natasha commenced the lease extension process as the eighty year threshold was rapidly advancing. The transaction completed in August 2010. The freeholder’s charges were kept to an absolute minimum.
Mrs J Bailey purchased a first floor apartment in Hayle in April 2011. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative properties in Hayle with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease ran out in 2096. Given that there were 71 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Last Spring we were approach by Ms Rachel Green , who purchased a one bedroom apartment in Hayle in September 2001. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Comparable properties in Hayle with 100 year plus lease were in the region of £254,200. The average ground rent payable was £60 collected every twelve months. The lease came to a finish in 2076. Having 51 years unexpired we approximated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 plus fees.