Hayling Island leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Hayling Island will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| 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 also be not less than 75 years at the outset 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. |
| 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. |
The lawyers that we work with handle Hayling Island lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Hugo was the the leasehold owner of a 2 bedroom apartment in Hayling Island on the market with a lease of a little over 59 years left. Hugo informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Hugo to exercise his statutory right. Hugo procured expert advice and secured an acceptable deal informally and readily saleable.
Mr and Mrs. J Moreau moved into a studio flat in Hayling Island in February 2005. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Hayling Island with a long lease were worth £255,000. The mid-range ground rent payable was £50 billed every twelve months. The lease expired in 2095. Taking into account 70 years remaining we calculated the premium to the landlord for the lease extension to be within £10,500 and £12,000 not including fees.
Last Winter we were contacted by Dr Aarav Reed , who took over the lease of a basement flat in Hayling Island in September 2009. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparable residencies in Hayling Island with an extended lease were valued about £246,800. The average ground rent payable was £60 billed quarterly. The lease terminated in 2075. Given that there were 50 years remaining we estimated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 plus professional charges.