Halewood leases on residential properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the current lease drops under 80 years - otherwise a higher amount will be due. Flat owners in Halewood will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some cases you may not qualify. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 obtain 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 in-depth market knowledge dealing with Halewood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harry owned a high value flat in Halewood being marketed with a lease of just over 61 years remaining. Harry informally contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Harry to invoke his statutory right. Harry obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Mr and Mrs. G Dupont moved into a one bedroom flat in Halewood in May 1997. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical residencies in Halewood with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease came to a finish on 16 June 2100. Considering the 74 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Dr Shannon García owned a garden flat in Halewood in March 2003. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Halewood with a long lease were worth £243,000. The mid-range ground rent payable was £65 collected per annum. The lease termination date was on 27 September 2089. Given that there were 63 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including professional charges.