Stop! Your Lease Extension in Hainault Could Be FREE

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Many leaseholders in Hainault are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Hainault has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to commence your Hainault lease extension

Top reasons for lease extension now:

A Hainault leasehold property depreciates with the years remaining on the lease.

Hainault residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Banks and Building Societies may not grant a mortgage on a short lease

Many banks and building societies insist on a lengthy amount of time remaining on a leasehold residence before they will contemplate lending on it. Regardless of whether you need a mortgage, you should keep in mind that it is probable that someone intending to buy your property in the future might well do, so where they can't get a mortgage, then the market price of the property could be adversely impacted. In the last decade the majority of banks and building societies have increased the required minimum lease length that they are willing to lend on

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

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;
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.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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.

What makes us experts in Hainault lease extensions?

Regardless of whether you are a tenant or a freeholder in Hainault,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hainault valuers.

Hainault Lease Extension Example Cases:

Samuel, Hainault, North East London,

Samuel owned a 2 bedroom apartment in Hainault on the market with a lease of fraction over sixty years left. Samuel on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Samuel to exercise his statutory right. Samuel procured expert advice and secured satisfactory deal informally and ending up with a market value flat.

Hainault case:

Mr Y Martinez owned a ground floor flat in Hainault in February 2006. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative flats in Hainault with an extended lease were in the region of £174,200. The average ground rent payable was £55 billed monthly. The lease ended on 4 October 2077. Taking into account 51 years outstanding we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.

Decision in Redbridge

An example of a Freehold Enfranchisement matter before the tribunal for a Hainault premises 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 was in relation to 2 flats. The unexpired residue of the current lease was 69.26 years.