Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Halifax. Clearly, the term of lease remaining reduces over time. This is often overlooked and only raises itself as an issue when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Halifax have the right to extend the lease for a further 90 years in accordance with statute. You should give due attention before delaying your Halifax lease extension. Holding off the cost now simply increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Halifax with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Halifax,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Halifax valuers.
After lengthy discussions with the freeholder of her two bedroom apartment in Halifax, Isabelle commenced the lease extension process just as her lease was coming close to the crucial 80-year threshold. The lease extension was finalised in May 2011. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were contacted by Dr D Garcia , who was assigned a lease of a one bedroom apartment in Halifax in August 2007. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Halifax with 100 year plus lease were worth £285,000. The average ground rent payable was £45 billed monthly. The lease terminated on 15 October 2096. Taking into account 72 years unexpired we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.
Mr and Mrs. N Petit moved into a garden flat in Halifax in August 2000. We are asked if we could estimate the price would be for a 90 year lease extension. Comparative flats in Halifax with an extended lease were worth £233,200. The average amount of ground rent was £60 billed per annum. The lease elapsed in 2085. Considering the 61 years unexpired we calculated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of professional charges.