Halewood residential property held on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
Leasehold residencies in Halewood with in excess of one hundred years unexpired 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with undertake Halewood 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 conveyancer we work with provide it.
During the course of the last few months Milo, started to get close to the eighty-year mark with the lease on his ground floor flat in Halewood. In buying his home two decades ago, the length of the lease was of little concern. by good luck, he recognised he would soon be paying an escalated premium for a lease extension. Milo was able to extend his lease just in the nick of time last March. Milo and the freeholder via the managing agents eventually settled on a premium of £5,000 . If he failed to meet the deadline, the premium would have become more costly by at least £925.
Last month we were called by Mr T Phillips , who moved into a one bedroom apartment in Halewood in July 1996. We are asked if we could approximate the price could be to extend the lease by ninety years. Identical flats in Halewood with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £45 collected every twelve months. The lease concluded in 2094. Taking into account 69 years unexpired we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.
Last year we were phoned by Dr U Wilson , who was assigned a lease of a basement apartment in Halewood in April 2010. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar homes in Halewood with 100 year plus lease were valued around £216,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2083. Given that there were 58 years outstanding we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of costs.