The value of Halewood leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is below than eighty years
Leasehold properties in Halewood with more than 100 years remaining 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 increased 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Jack, started to get near to the eighty-year mark with the lease on his basement apartment in Halewood. In buying his flat two decades ago, the lease term was of little interest. Thankfully, he recognised he needed to take action soon on a lease extension. Jack extended the lease at the eleventh hour in May. Jack and the landlord in the end agreed on sum of £5,000 . If he not met the deadline, the amount would have escalated by a minimum £1,150.
Mr David Adams bought a first floor apartment in Halewood in February 2002. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative premises in Halewood with an extended lease were worth £198,800. The mid-range amount of ground rent was £55 billed per annum. The lease elapsed in 2081. Given that there were 55 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of professional charges.
In 2012 we were approached by Dr Samuel Ricardo who, having purchased a purpose-built apartment in Halewood in August 2001. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative homes in Halewood with an extended lease were worth £295,000. The average ground rent payable was £45 billed monthly. The lease concluded on 8 July 2101. Considering the 75 years as a residual term we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.