Main reasons to commence your Halifax lease extension

Main reasons to commence your Halifax lease extension today:

A Halifax lease depreciates with the years remaining on the lease.

With a long leasehold property in Halifax, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Residents in Halifax with a lease approaching 81 years remaining should seriously think of extending it sooner than later. When a lease has less than 80 years remaining, under the current Act the freeholder is entitled to calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Lending institutions will not issue a mortgage on a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to get nervous at around 75 years. This may be problematic as and when you come to market or refinance your flat as it will be practically unmortgageable. Even though you might have no imminent desire to sell but when you do your buyer will have to hold off for a couple of years before they can exercise the right to a a lease extension.

What makes us experts in Halifax lease extensions?

Retaining our service gives you better control over the value of your Halifax leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Halifax Lease Extension Example Cases:

Abbie, Halifax, West Yorkshire,

Trailing unsuccessful discussions with the landlord of her leasehold apartment in Halifax, Abbie initiated the lease extension process as the 80 year threshold was fast coming. The lease extension completed in September 2014. The landlord’s charges were negotiated to below 650 pounds.

Halifax case:

In 2012 we were called by Mr and Mrs. U Khan who, having owned a basement apartment in Halifax in January 1998. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar premises in Halifax with an extended lease were valued around £205,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ran out in 2105. Taking into account 79 years unexpired we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.

Halifax case:

In 2013 we were contacted by Dr Erin Thompson who, having took over the lease of a newly refurbished apartment in Halifax in November 2009. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Comparative premises in Halifax with 100 year plus lease were in the region of £275,000. The average ground rent payable was £65 invoiced every twelve months. The lease ended on 19 September 2094. Taking into account 68 years remaining we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.