Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Halkyn. Clearly, the period of lease left shortens as time goes by. This may slip by relatively unnoticed when the property has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Halkyn have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give careful attention before delaying your Halkyn lease extension. Holding off the cost now simply increases the price you will eventually have to pay for a lease extension
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Halkyn leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jason was the the leasehold proprietor of a high value apartment in Halkyn on the market with a lease of a few days over 72 years outstanding. Jason informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree 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. Ordinarily, ground rent would not be due on a lease extension were Jason to exercise his statutory right. Jason obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Mr C Peterson owned a basement apartment in Halkyn in September 2003. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparable residencies in Halkyn with an extended lease were valued around £171,800. The mid-range ground rent payable was £55 billed every twelve months. The lease finished in 2076. Having 50 years remaining we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 not including fees.
Mr and Mrs. V Martin took over the lease of a newly refurbished flat in Halkyn in March 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Halkyn with a long lease were in the region of £280,000. The average ground rent payable was £45 billed every twelve months. The lease lapsed in 2096. Having 70 years outstanding we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.