Halkyn residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 in-depth market knowledge and the close ties they enjoy with Halkyn valuers.
Ollie owned a conversion apartment in Halkyn being marketed with a lease of fraction over 72 years outstanding. Ollie on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Ollie to invoke his statutory right. Ollie obtained expert advice and secured an acceptable deal without going to tribunal and sell the flat.
Last year we were called by Ms T Lefebvre , who took over the lease of a purpose-built apartment in Halkyn in January 2010. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparable premises in Halkyn with an extended lease were in the region of £250,400. The average ground rent payable was £65 invoiced monthly. The lease concluded on 1 January 2089. Considering the 64 years remaining we approximated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 not including fees.
Last August we were phoned by Dr Stanley Young , who completed a one bedroom flat in Halkyn in July 2011. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparative homes in Halkyn with 100 year plus lease were worth £189,000. The mid-range ground rent payable was £55 invoiced per annum. The lease elapsed on 5 November 2078. Taking into account 53 years left we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus fees.