The only way is down when it comes to Halifax lease terms. Halifax flats that have a residual term shorter than 80 years will reduce in value at a rapid rate, and the cost of extending your lease will increase.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Halifax,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Halifax valuers.
Last Winter Theo, started to get close to the 80-year mark with the lease on his garden apartment in Halifax. Having bought his property 19 years ago, the unexpired term was of minimal significance. by good luck, he noticed he would soon be paying an inflated amount for Extending the lease. Theo was able to extend his lease just in the nick of time in April. Theo and the landlord in the end settled on sum of £6,000 . If he failed to meet the deadline, the premium would have escalated by at least £950.
Last Spring we were approach by Mr and Mrs. T Wilson , who took over the lease of a one bedroom flat in Halifax in November 1997. We are asked if we could estimate the price could be for a 90 year extension to my lease. Similar properties in Halifax with 100 year plus lease were worth £290,000. The average ground rent payable was £45 billed every twelve months. The lease terminated on 5 February 2098. Given that there were 73 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
Dr Leo Mitchell completed a studio apartment in Halifax in May 2009. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparable properties in Halifax with a long lease were in the region of £240,600. The average amount of ground rent was £60 billed quarterly. The lease terminated on 4 February 2087. Taking into account 62 years remaining we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 not including fees.