With a domestic leasehold property in Haslington, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are less than 80 years remaining. Anyone in Haslington with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. Once the lease term has below eighty years outstanding, under the relevant statute the landlord is entitled to calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Haslington with in excess of one hundred 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Haslington can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 Haslington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy discussions with the freeholder of her first floor flat in Haslington, Daisy initiated the lease extension process just as the lease was approaching the all-important eighty-year deadline. The lease extension was finalised in November 2009. The freeholder’s fees were negotiated to about 550 pounds.
Last Summer we were e-mailed by Mr and Mrs. G Carter , who bought a one bedroom apartment in Haslington in March 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Similar homes in Haslington with an extended lease were worth £198,800. The average ground rent payable was £55 billed annually. The lease concluded on 12 September 2079. Given that there were 55 years left we calculated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 not including costs.
Last Winter we were contacted by Mr and Mrs. W García , who owned a garden flat in Haslington in April 2006. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical properties in Haslington with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £50 collected yearly. The lease came to a finish in 2099. Considering the 75 years unexpired we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.