When it comes to long leasehold premises in Halkyn, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Anyone in Halkyn with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When the lease term has under eighty years left, under the current Act the landlord can calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Halkyn with in excess of 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 premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The lawyers that we work with undertake Halkyn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Subsequent to protracted correspondence with the freeholder of her ground floor flat in Halkyn, Nicole started the lease extension process as the eighty year threshold was fast advancing. The transaction was finalised in July 2013. The freeholder’s fees were kept to an absolute minimum.
Last Spring we were phoned by Ms S Gunderson , who was assigned a lease of a ground floor apartment in Halkyn in October 2005. We are asked if we could approximate the price would be to prolong the lease by an additional years. Identical properties in Halkyn with an extended lease were valued about £210,000. The mid-range ground rent payable was £50 billed every twelve months. The lease came to a finish on 15 May 2106. Given that there were 80 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.
Last Autumn we were called by Mr Jake Howard , who purchased a ground floor apartment in Halkyn in June 1996. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar flats in Halkyn with an extended lease were worth £275,000. The mid-range ground rent payable was £45 billed quarterly. The lease came to a finish in 2095. Taking into account 69 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.