For those whose Halifax home is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Halifax can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in this area.
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 procuring Halifax lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dexter owned a high value apartment in Halifax being marketed with a lease of just over 59 years left. Dexter on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2009 we were contacted by Mr P Clark who, having owned a basement flat in Halifax in October 2011. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable homes in Halifax with an extended lease were valued around £257,800. The average amount of ground rent was £65 billed monthly. The lease ended in 2090. Considering the 65 years remaining we approximated the premium to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of fees.
Dr Edward González owned a newly refurbished apartment in Halifax in October 1998. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Comparable homes in Halifax with a long lease were worth £191,400. The average amount of ground rent was £55 invoiced quarterly. The lease terminated on 6 April 2079. Considering the 54 years outstanding we approximated the premium to the landlord for the lease extension to be within £34,200 and £39,600 exclusive of fees.