Halifax Lease Extension - Free Consultation

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Why you should commence your Halifax lease extension


Top reasons for lease extension now:

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

The closer a residential lease in Halifax nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of 99 years to run then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner as opposed to later. Most flat owners in Halifax will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.

Lenders will not grant a mortgage on a short lease

The trend since the credit crunch has been for banks to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by banks has increased. Historically lenders were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Lender Requirement
Halifax Minimum 70 years from the date of the mortgage.
Leeds Building Society 85 years remaining from the start of the mortgage.
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.
Skipton Building Society 85 years from the date of completion of the mortgage

For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
Royal Bank of Scotland Mortgage term plus 30 years.

Get in touch with one of our Halifax lease extension solicitors or enfranchisement solicitors

The lawyers that we work with procure Halifax lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Halifax Lease Extension Case Studies:

Luke, Halifax, West Yorkshire

In recent months Luke, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Halifax. Having purchased his flat 19 years previously, the length of the lease was of no concern. Luckily, he noticed he needed to take action soon on Extending the lease. Luke was able to extend his lease just under the wire last March. Luke and the freeholder eventually settled on an amount of £5,500 . If he not met the deadline, the premium would have gone up by at least £1,100.

Halifax case:

Mr and Mrs. F Vincent took over the lease of a purpose-built flat in Halifax in June 2006. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Similar residencies in Halifax with an extended lease were worth £250,400. The average amount of ground rent was £65 collected per annum. The lease end date was in 2089. Considering the 64 years remaining we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of legals.

Halifax case:

In 2014 we were contacted by Ms Amelia González who, having was assigned a lease of a first floor flat in Halifax in April 2010. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Similar residencies in Halifax with an extended lease were worth £184,000. The average ground rent payable was £55 billed quarterly. The lease ended in 2078. Given that there were 53 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus costs.