With a residential leasehold property in Hainault, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Residents in Hainault with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has below eighty years outstanding, under the current Act the landlord can calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
Lease extensions in Hainault can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Hainault lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 John, started to get near to the eighty-year mark with the lease on his ground floor apartment in Hainault. In buying his property two decades ago, the lease term was of little importance. Thankfully, he became aware that he needed to take action soon on a lease extension. John arranged for a lease extension just in the nick of time last August. John and the landlord ultimately settled on the final figure of £5,000 . If he failed to meet the deadline, the figure would have become more costly by a minimum £1,025.
Mrs O Murphy took over the lease of a garden apartment in Hainault in April 2011. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Similar homes in Hainault with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 collected yearly. The lease concluded on 22 June 2106. Given that there were 80 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.
An example of a Freehold Enfranchisement case for a Hainault flat is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case related to 2 flats. The unexpired term was 69.26 years.