On the balance of probabilities if you own a flat in Hayle you actually own a long leasehold interest over your property
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent 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 decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Hayle,the lease extension lawyers 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 Hayle valuers.
Two years ago Harvey, started to get near to the eighty-year threshold with the lease on his first floor flat in Hayle. Having bought his home 18 years ago, the unexpired term was of no relevance. Luckily, he noticed he needed to take steps soon on a lease extension. Harvey extended the lease just under the wire last March. Harvey and the landlord who owned the flat above in the end settled on the final figure of £6,000 . If he not met the deadline, the amount would have become more exhorbitant by at least £1,150.
Mr and Mrs. A Bell took over the lease of a ground floor apartment in Hayle in July 2012. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical residencies in Hayle with an extended lease were valued about £225,400. The average ground rent payable was £45 invoiced per annum. The lease finished on 16 June 2090. Taking into account 64 years left we estimated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 plus fees.
In 2009 we were contacted by Ms Stephanie Martin who, having owned a purpose-built flat in Hayle in June 2012. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Hayle with 100 year plus lease were worth £270,000. The average ground rent payable was £55 collected quarterly. The lease termination date was on 14 January 2101. Considering the 75 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.