As the length of the unexpired term of a Halkyn domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, beyond 100 years remaining then this decrease may be of little impact however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Halkyn will qualify for this right; that being said a lawyer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Halkyn with over 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service will provide you better control over the value of your Halkyn leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Adam, came precariously near to the 80-year threshold with the lease on his one bedroom apartment in Halkyn. Having bought his flat two decades ago, the lease term was of no concern. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Adam arranged for a lease extension just in the nick of time in September. Adam and the landlord who owned the flat above in the end settled on sum of £6,000 . If he had missed the deadline, the price would have become more exhorbitant by at least £1,075.
Mr and Mrs. M Torres bought a basement flat in Halkyn in September 1997. The question was if we could estimate the premium would be for a 90 year extension to my lease. Comparable homes in Halkyn with a long lease were worth £205,000. The average amount of ground rent was £50 billed every twelve months. The lease concluded in 2103. Having 79 years left we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.
In 2011 we were approached by Ms Tia Sharif who, having was assigned a lease of a basement flat in Halkyn in September 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Halkyn with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £65 collected per annum. The lease elapsed in 2092. Considering the 68 years unexpired we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.