Huyton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Huyton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Huyton you would be well advised to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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. |
Using our service will provide you enhanced control over the value of your Huyton leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Tyler owned a conversion apartment in Huyton on the market with a lease of fraction over fifty eight years remaining. Tyler informally approached his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Tyler to exercise his statutory right. Tyler obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Dr C Bertrand acquired a one bedroom apartment in Huyton in August 2011. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar premises in Huyton with an extended lease were in the region of £267,600. The average amount of ground rent was £65 invoiced per annum. The lease concluded on 13 July 2091. Taking into account 67 years remaining we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including fees.
Mr and Mrs. R Ramírez purchased a basement apartment in Huyton in September 1996. We are asked if we could approximate the price could be to prolong the lease by an additional years. Similar flats in Huyton with 100 year plus lease were in the region of £206,200. The average ground rent payable was £60 collected annually. The lease terminated in 2080. Taking into account 56 years unexpired we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus professional charges.