Unfortunately that a Hainault residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Hainault property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be payable. Most flat owners in Hainault will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold properties in Hainault with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancers 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.
Last year Aarav, started to get close to the eighty-year mark with the lease on his basement apartment in Hainault. In buying his home twenty years ago, the unexpired term was of little importance. Fortunately, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Aarav arranged for a lease extension just in the nick of time last August. Aarav and the landlord ultimately agreed on a premium of £5,000 . If he failed to meet the deadline, the figure would have become more costly by a minimum £900.
In 2009 we were phoned by Mr and Mrs. E King who, having acquired a ground floor apartment in Hainault in May 1995. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Similar premises in Hainault with an extended lease were valued about £198,800. The mid-range ground rent payable was £55 invoiced yearly. The lease ended on 3 June 2081. Having 55 years unexpired we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of legals.
An example of a Freehold Enfranchisement case 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 affected 2 flats. The unexpired term as at the valuation date was 69.26 years.