When it comes to residential leasehold premises in Halifax, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Leasehold owners in Halifax with a lease nearing 81 years remaining should seriously think of extending it without delay. When a lease has below 80 years left, under the current Act the landlord can calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Halifax with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Halifax leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the landlord of her purpose-built apartment in Halifax, Rebecca started the lease extension process as the eighty year threshold was fast advancing. The lease extension completed in February 2013. The landlord’s fees were kept to an absolute minimum.
Dr Finn Clark acquired a newly refurbished flat in Halifax in July 1995. We are asked if we could estimate the price would be for a ninety year lease extension. Similar properties in Halifax with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 billed monthly. The lease lapsed in 2104. Considering the 79 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.
Last Spring we were approach by Mr Ryan Peterson , who completed a garden flat in Halifax in March 2007. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative residencies in Halifax with a long lease were worth £275,000. The average ground rent payable was £65 billed per annum. The lease came to a finish in 2093. Given that there were 68 years remaining we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.