Haslington leases on domestic deteriorating in value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Haslington will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and steps to comply with once the process has commenced so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Haslington with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Haslington 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 lawyer we work with provide it.
Last October Teddy, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Haslington. Having bought his flat two decades ago, the unexpired term was of no relevance. Thankfully, he recognised he needed to take action soon on a lease extension. Teddy arranged for a lease extension at the eleventh hour in January. Teddy and the freeholder in the end agreed on a premium of £5,000 . If the lease had slid below eighty years, the price would have increased by a minimum £1,125.
Dr Owen Allen moved into a recently refurbished flat in Haslington in November 1998. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparative premises in Haslington with a long lease were valued about £267,600. The average ground rent payable was £65 invoiced every twelve months. The lease finished in 2092. Taking into account 67 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of professional charges.
Mr and Mrs. B Lefebvre took over the lease of a one bedroom apartment in Haslington in August 2004. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Similar homes in Haslington with a long lease were valued about £206,200. The average amount of ground rent was £55 billed monthly. The lease end date was on 4 July 2081. Given that there were 56 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of legals.