On the balance of probabilities if you own a flat in Halifax you actually own a long leasehold interest over your property
Leasehold premises in Halifax with in excess of 100 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 property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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.
In the wake of 6 months of unsuccessful negotiations with the freeholder of her ground floor apartment in Halifax, Zoe commenced the lease extension process just as her lease was approaching the crucial eighty-year threshold. The lease extension was concluded in September 2010. The freeholder’s fees were negotiated to under 650 pounds.
In 2014 we were approached by Mrs Danielle Davis who, having acquired a basement flat in Halifax in April 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Identical properties in Halifax with a long lease were in the region of £285,000. The average ground rent payable was £45 billed yearly. The lease termination date was in 2098. Given that there were 72 years left we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
In 2014 we were called by Mr and Mrs. E Rodríguez who, having was assigned a lease of a one bedroom apartment in Halifax in May 2005. We are asked if we could approximate the price would be for a 90 year lease extension. Similar flats in Halifax with a long lease were worth £233,200. The mid-range ground rent payable was £60 invoiced yearly. The lease ran out on 21 November 2087. Given that there were 61 years remaining we approximated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 not including expenses.