There is no doubt about it a leasehold property in Hainault is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 125 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Hainault will qualify for this right; nevertheless a conveyancing solicitor will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Irrespective of whether you are a tenant or a landlord 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.
In the wake of eight months of unsuccessful correspondence with the landlord of her purpose-built apartment in Hainault, Freya commenced the lease extension process just as the lease was nearing the critical 80-year deadline. The lease extension was concluded in July 2013. The landlord’s costs were kept to an absolute minimum.
In 2010 we were contacted by Mr S Norbert who, having moved into a basement apartment in Hainault in September 2005. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative homes in Hainault with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed monthly. The lease termination date was in 2104. Having 79 years left we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.
An example of a Freehold Enfranchisement matter before the tribunal 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 was in relation to 2 flats. The number of years remaining on the existing lease(s) was 69.26 years.