The value of Halifax leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is below than 80 years
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Regardless of whether you are a tenant or a landlord in Halifax,the lease extension lawyers 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.
Daniel was the the leasehold proprietor of a studio flat in Halifax being sold with a lease of fraction over 59 years outstanding. Daniel on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be payable on a lease extension were Daniel to exercise his statutory right. Daniel procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Dr Thomas Morris purchased a first floor apartment in Halifax in August 1996. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Similar premises in Halifax with 100 year plus lease were valued about £295,000. The mid-range amount of ground rent was £45 invoiced annually. The lease elapsed on 21 September 2100. Given that there were 74 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
In 2010 we were phoned by Mr and Mrs. M Murphy who, having acquired a first floor apartment in Halifax in January 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Identical residencies in Halifax with an extended lease were in the region of £243,000. The mid-range ground rent payable was £65 billed annually. The lease came to a finish in 2089. Considering the 63 years outstanding we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of expenses.