Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Hayle. Inevitably, the term of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Hayle have the right to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Please give careful attention before putting off your Hayle lease extension. Putting off that expense now simply increases the price you will ultimately incur to extend your lease
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
Engaging our service gives you increased control over the value of your Hayle leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Mason, came perilously close to the eighty-year mark with the lease on his garden apartment in Hayle. Having bought his property two decades ago, the unexpired term was of minimal relevance. Thankfully, he noticed he needed to take steps soon on Extending the lease. Mason was able to extend his lease just under the wire in June. Mason and the freeholder ultimately agreed on an amount of £6,000 . If he not met the deadline, the price would have become more costly by a minimum £1,050.
In 2012 we were called by Mr B Young who, having moved into a purpose-built flat in Hayle in March 2009. The question was if we could estimate the premium could be to prolong the lease by an additional years. Comparable properties in Hayle with an extended lease were valued about £246,800. The average ground rent payable was £60 collected quarterly. The lease finished on 23 April 2076. Having 50 years left we estimated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 not including professional charges.
Dr Theo Robinson completed a studio apartment in Hayle in June 2004. We are asked if we could approximate the price could be to prolong the lease by 90 years. Similar residencies in Hayle with a long lease were in the region of £208,200. The average amount of ground rent was £65 billed per annum. The lease finished on 11 October 2087. Given that there were 61 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus fees.