As the the remaining lease term of a Halkyn domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, in excess of 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Halkyn will meet the qualifying criteria; nevertheless a lawyer will be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Halkyn with over 100 years left on the lease are often 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 merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Lease extensions in Halkyn can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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.
Luca owned a conversion flat in Halkyn being sold with a lease of just over 59 years left. Luca informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Luca to invoke his statutory right. Luca obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last Autumn we were e-mailed by Dr Leon Reed , who took over the lease of a purpose-built flat in Halkyn in April 2007. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable properties in Halkyn with an extended lease were worth £295,000. The mid-range amount of ground rent was £45 collected quarterly. The lease came to a finish in 2100. Having 74 years remaining we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.
In 2011 we were contacted by Mr Oliver Miller who, having purchased a garden apartment in Halkyn in August 1999. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Similar residencies in Halkyn with 100 year plus lease were in the region of £243,000. The average ground rent payable was £65 invoiced per annum. The lease concluded on 7 April 2089. Taking into account 63 years left we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including fees.