It’s a harsh truth that a Halkyn residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Halkyn property market.Where your lease has approximately 90 years left, you need to start considering 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 slips below eighty years - otherwise a higher premium will be payable. Most flat owners in Halkyn will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Halkyn with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Halkyn,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Halkyn valuers.
Subsequent to lengthy discussions with the freeholder of her two bedroom apartment in Halkyn, Isabel started the lease extension process just as her lease was nearing the all-important eighty-year mark. The legal work was concluded in May 2009. The landlord’s fees were kept to an absolute minimum.
Last Autumn we were called by Mr and Mrs. K Jones , who was assigned a lease of a garden apartment in Halkyn in April 1995. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative residencies in Halkyn with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 invoiced monthly. The lease elapsed in 2084. Given that there were 58 years remaining we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus professional charges.
Last Summer we were approach by Mr and Mrs. D Moore , who purchased a recently refurbished flat in Halkyn in October 1996. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar premises in Halkyn with an extended lease were valued around £205,000. The average ground rent payable was £50 invoiced annually. The lease ran out in 2104. Considering the 78 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.