Halkyn leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Halkyn will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain cases you may not qualify. There are also strict deadlines and steps to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Halkyn with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Halifax | 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 also be not less than 75 years at the outset 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 |
Regardless of whether you are a tenant or a freeholder in Halkyn,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Halkyn valuers.
Felix owned a 2 bedroom apartment in Halkyn being sold with a lease of fraction over 61 years left. Felix on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Felix to invoke his statutory right. Felix procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.
In 2014 we were e-mailed by Ms T Morgan who, having purchased a basement flat in Halkyn in April 2005. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Halkyn with an extended lease were valued about £225,800. The mid-range ground rent payable was £60 collected yearly. The lease expired on 6 September 2085. Considering the 60 years remaining we calculated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 not including professional charges.
Mr and Mrs. O Bernard purchased a newly refurbished flat in Halkyn in April 2006. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparable properties in Halkyn with an extended lease were worth £210,000. The mid-range ground rent payable was £50 invoiced per annum. The lease expired on 27 February 2105. Taking into account 80 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.