The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Hainault can extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Hainault lease extension. Postponing that expense today simply increases the price you will eventually be required to pay to extend the lease.
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Hainault leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Callum owned a high value apartment in Hainault on the market with a lease of fraction over 59 years remaining. Callum on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Callum to invoke his statutory right. Callum obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Ms G Wright bought a basement apartment in Hainault in February 2011. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparable homes in Hainault with a long lease were worth £171,800. The mid-range ground rent payable was £55 invoiced yearly. The lease ran out on 25 October 2075. Having 50 years unexpired we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 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 was in relation to 2 flats. The unexpired lease term was 69.26 years.