With a long leasehold premises in Halifax, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Anyone in Halifax with a lease approaching 81 years remaining should seriously consider extending it without delay. Once the lease term has less than 80 years outstanding, under the current legislation the landlord is entitled to calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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 Halifax can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 Halifax lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Jackson, came precariously close to the 80-year threshold with the lease on his first floor apartment in Halifax. Having bought his property 18 years previously, the unexpired term was of minimal bearing. Thankfully, he noticed he would soon be paying way over the odds for a lease extension. Jackson arranged for a lease extension at the eleventh hour last May. Jackson and the landlord who owned the flat above ultimately agreed on the final figure of £5,500 . If the lease had fallen below 80 years, the premium would have gone up by a minimum £1,125.
Mr J Hill acquired a one bedroom flat in Halifax in November 2011. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable residencies in Halifax with an extended lease were worth £275,000. The mid-range ground rent payable was £65 invoiced per annum. The lease elapsed on 12 April 2094. Considering the 68 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.
Last Autumn we were approach by Mrs Ellie Bertrand , who purchased a ground floor flat in Halifax in January 2000. We are asked if we could approximate the price would be for a 90 year lease extension. Comparable residencies in Halifax with an extended lease were worth £208,600. The average ground rent payable was £60 invoiced annually. The lease finished on 18 January 2083. Having 57 years remaining we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of legals.