With a residential leasehold premises in Halewood, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably when there are less than 80 years remaining. Leasehold owners in Halewood with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has below eighty years outstanding, under the relevant statute the landlord is entitled to calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Halewood with more than 100 years outstanding on the lease are sometimes regarded as a ‘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 upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Engaging our service gives you better control over the value of your Halewood leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Noah, came critically near to the 80-year mark with the lease on his leasehold flat in Halewood. Having purchased his flat 18 years ago, the unexpired term was of minimal bearing. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Noah arranged for a lease extension just ahead of time last January. Noah and the freeholder via the management company subsequently settled on a premium of £5,500 . If the lease had slid lower than eighty years, the sum would have gone up by at least £1,075.
In 2010 we were e-mailed by Mr U Alexander who, having completed a ground floor apartment in Halewood in March 2011. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative properties in Halewood with 100 year plus lease were in the region of £235,600. The mid-range ground rent payable was £60 collected yearly. The lease expiry date was in 2087. Considering the 62 years as a residual term we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including costs.
Dr I Anderson took over the lease of a purpose-built flat in Halewood in October 2005. The question was if we could estimate the premium would be to prolong the lease by an additional years. Comparable premises in Halewood with 100 year plus lease were worth £174,200. The average amount of ground rent was £55 billed yearly. The lease end date was in 2076. Given that there were 51 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus professional charges.