Halewood leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Halewood will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and procedures to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Halewood with in excess of 100 years remaining 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Lease extensions in Halewood can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
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 procuring Halewood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Muhammad, came very near to the eighty-year threshold with the lease on his first floor apartment in Halewood. Having purchased his flat two decades ago, the lease term was of no concern. Fortunately, he realised he would soon be paying an escalated premium for a lease extension. Muhammad was able to extend his lease just in the nick of time last May. Muhammad and the landlord who owned the flat above ultimately agreed on an amount of £5,000 . If he had missed the deadline, the figure would have gone up by a minimum £1,150.
Dr R Laurent was assigned a lease of a first floor flat in Halewood in June 2004. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Identical residencies in Halewood with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed annually. The lease expired on 14 August 2098. Taking into account 72 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
In 2013 we were called by Mr Y Stewart who, having acquired a one bedroom flat in Halewood in September 2011. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical homes in Halewood with 100 year plus lease were valued around £233,200. The average amount of ground rent was £60 billed yearly. The lease concluded on 8 October 2087. Having 61 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of expenses.