The re-sale value of a leasehold property in Haltwhistle depends on how long the lease has left to run. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the lease extension process when a lease still has 82 years remaining so that a lease extension can be addressed prior to the 80 year mark. Current legislation entitles Haltwhistle qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with undertake Haltwhistle lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 6 months of protracted discussions with the freeholder of her ground floor flat in Haltwhistle, Caitlin initiated the lease extension process as the 80 year threshold was quickly advancing. The legal work was concluded in July 2009. The freeholder’s charges were kept to an absolute minimum.
Dr Jamie Bennett took over the lease of a one bedroom flat in Haltwhistle in September 2000. We are asked if we could approximate the premium would be to extend the lease by 90 years. Comparative homes in Haltwhistle with 100 year plus lease were worth £166,400. The mid-range ground rent payable was £60 collected quarterly. The lease end date was on 13 May 2080. Considering the 54 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 not including fees.
Last Spring we were approach by Mr and Mrs. T Cox , who owned a one bedroom apartment in Haltwhistle in January 2012. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparable residencies in Haltwhistle with 100 year plus lease were valued around £227,800. The average ground rent payable was £45 invoiced monthly. The lease concluded on 10 March 2091. Considering the 65 years left we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.