Hainault leases on domestic properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Hainault will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some cases you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Hainault with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Hainault 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.
Riley owned a conversion apartment in Hainault on the market with a lease of just over 72 years outstanding. Riley on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Riley to exercise his statutory right. Riley procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Dr V Michel purchased a one bedroom flat in Hainault in May 2006. The question was if we could estimate the price could be for a ninety year extension to my lease. Identical premises in Hainault with a long lease were in the region of £233,200. The average amount of ground rent was £60 invoiced quarterly. The lease end date was in 2086. Given that there were 61 years remaining we calculated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 plus legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Hainault residence 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 affected 2 flats. The unexpired term was 69.26 years.