The market value of Halkyn leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the remaining term is below than 80 years
Leasehold properties in Halkyn with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Halkyn can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Halkyn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Connor, came perilously close to the 80-year threshold with the lease on his leasehold apartment in Halkyn. Having purchased his property two decades ago, the unexpired term was of no significance. As luck would have it, he recognised he would soon be paying an inflated amount for a lease extension. Connor was able to extend his lease at the eleventh hour in August. Connor and the freeholder via the management company ultimately settled on sum of £5,500 . If the lease had dropped to less than eighty years, the amount would have gone up by a minimum £975.
Mr and Mrs. O Williams was assigned a lease of a recently refurbished apartment in Halkyn in August 2008. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar premises in Halkyn with a long lease were in the region of £206,200. The average amount of ground rent was £55 invoiced quarterly. The lease came to a finish on 18 September 2081. Given that there were 56 years outstanding we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.
Last Autumn we were called by Dr Morgan Scott , who acquired a basement apartment in Halkyn in March 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Halkyn with 100 year plus lease were in the region of £300,000. The mid-range ground rent payable was £50 billed annually. The lease ran out in 2101. Having 76 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.