When it comes to domestic leasehold premises in Hainault, you are actually buying a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are fewer than eighty years remaining. Residents in Hainault with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once the lease term has fewer than eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Hainault can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
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 a wealth of experience 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.
Half a year ago Muhammad, came seriously near to the 80-year threshold with the lease on his one bedroom apartment in Hainault. In buying his flat twenty years ago, the lease term was of no significance. Fortunately, he became aware that he needed to take action soon on Extending the lease. Muhammad extended the lease just in the nick of time in April. Muhammad and the landlord who owned the flat above in the end agreed on sum of £5,500 . If the lease had slipped below 80 years, the figure would have gone up by a minimum £950.
Ms Amber Thompson was assigned a lease of a newly refurbished apartment in Hainault in January 2006. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparable homes in Hainault with an extended lease were worth £243,000. The average ground rent payable was £65 invoiced per annum. The lease elapsed in 2089. Considering the 63 years outstanding we estimated the premium to the landlord for the lease extension to be between £20,000 and £23,000 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Hainault property 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.