Unfortunately that a Halifax residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Halifax property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. Most leasehold owners in Halifax will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold properties in Halifax with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| TSB | |
| The Mortgage Works | |
| Virgin |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
David owned a 2 bedroom apartment in Halifax on the market with a lease of a few days over 59 years remaining. David on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were David to exercise his statutory right. David procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last August we were contacted by Dr C Cox , who purchased a basement flat in Halifax in October 2008. We are asked if we could estimate the price could be to extend the lease by ninety years. Similar homes in Halifax with a long lease were worth £285,000. The average amount of ground rent was £45 invoiced yearly. The lease end date was in 2097. Considering the 71 years remaining we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.
Last Summer we were approach by Dr Samuel Thomas , who acquired a garden flat in Halifax in May 1999. We are asked if we could approximate the price could be for a 90 year lease extension. Identical flats in Halifax with an extended lease were in the region of £225,800. The average amount of ground rent was £60 invoiced every twelve months. The lease ran out on 19 January 2086. Considering the 60 years outstanding we estimated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 not including fees.