Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Hayle. Clearly, the term of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the property needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Hayle have the legal entitlement to extend the lease for an additional 90 years under legislation. Please give careful deliberation before putting off your Hayle lease extension. Putting off that expense now only increases the price you will eventually incur for a lease extension
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Lloyds TSB Scotland | 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 also be not less than 75 years at the outset 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. |
Regardless of whether you are a tenant or a freeholder in Hayle,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hayle valuers.
Seth was the the leasehold owner of a 2 bedroom flat in Hayle on the market with a lease of a little over fifty eight years left. Seth informally approached his landlord a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Seth to exercise his statutory right. Seth obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Last Christmas we were contacted by Ms Y Kelly , who took over the lease of a garden flat in Hayle in November 2003. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Hayle with a long lease were worth £265,000. The average amount of ground rent was £55 invoiced per annum. The lease came to a finish on 21 November 2100. Given that there were 74 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.
In 2010 we were approached by Dr L Dupont who, having acquired a one bedroom flat in Hayle in February 2000. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparative residencies in Hayle with an extended lease were valued around £166,400. The average ground rent payable was £60 invoiced every twelve months. The lease ran out on 18 October 2080. Given that there were 54 years remaining we approximated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 plus professional charges.