With a residential leasehold property in Halifax, you are in fact renting it for a certain period 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 should consider 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 particularly once there are less than eighty years left. Leasehold owners in Halifax with a lease approaching 81 years remaining should seriously think of extending it without delay. Once the lease term has below 80 years outstanding, under the relevant statute the freeholder can calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Halifax can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor 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.
Last October Blake, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Halifax. Having purchased his property 18 years previously, the lease term was of minimal significance. Luckily, he realised he would imminently be paying an escalated premium for Extending the lease. Blake arranged for a lease extension at the eleventh hour last September. Blake and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If the lease had fallen below 80 years, the figure would have gone up by a minimum £1,000.
Mr and Mrs. F Turner bought a studio flat in Halifax in February 2012. We are asked if we could estimate the premium could be to extend the lease by 90 years. Identical flats in Halifax with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 collected monthly. The lease ran out in 2105. Considering the 80 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.
In 2009 we were called by Dr Imogen Girard who, having purchased a one bedroom apartment in Halifax in November 1995. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparable properties in Halifax with a long lease were in the region of £275,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease came to a finish in 2094. Considering the 69 years remaining we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.