There is no doubt about it a leasehold flat or house in Halifax is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 125 years to run then this decrease may be of little impact however there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. Most flat owners in Halifax will meet the qualifying criteria; however a lawyer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Halifax with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Halifax valuers.
In 2014 Toby, came critically near to the 80-year threshold with the lease on his one bedroom flat in Halifax. Having purchased his flat 19 years ago, the lease term was of little importance. Thankfully, he became aware that he needed to take action soon on a lease extension. Toby was able to extend his lease at the eleventh hour last June. Toby and the landlord ultimately settled on sum of £5,000 . If he had missed the deadline, the amount would have become more exhorbitant by at least £850.
Dr V Ricardo completed a one bedroom flat in Halifax in November 1999. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Halifax with an extended lease were worth £243,000. The mid-range ground rent payable was £65 collected annually. The lease lapsed on 7 November 2089. Considering the 63 years unexpired we calculated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus expenses.
Dr Alice Hill was assigned a lease of a purpose-built apartment in Halifax in August 2006. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Similar homes in Halifax with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced per annum. The lease ran out on 1 October 2078. Given that there were 52 years unexpired we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 plus expenses.