Halifax leases on domestic properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Halifax will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Halifax can be a difficult process. We recommend you get 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 a wealth of experience 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.
Jayden owned a 2 bedroom flat in Halifax being sold with a lease of a little over 61 years left. Jayden informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jayden to invoke his statutory right. Jayden obtained expert legal guidance and secured satisfactory resolution without going to tribunal and sell the flat.
In 2012 we were approached by Dr Benjamin Patel who, having bought a one bedroom flat in Halifax in November 2012. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical premises in Halifax with a long lease were valued about £240,600. The average amount of ground rent was £60 billed monthly. The lease lapsed on 18 July 2088. Taking into account 62 years outstanding we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of legals.
In 2011 we were phoned by Dr K González who, having purchased a studio flat in Halifax in November 2000. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical premises in Halifax with 100 year plus lease were in the region of £174,200. The mid-range amount of ground rent was £55 billed annually. The lease terminated in 2077. Considering the 51 years left we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus expenses.