For anyone whose Haltwhistle flat is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Haltwhistle,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 in-depth market knowledge and the close ties they enjoy with Haltwhistle valuers.
Alex was the the leasehold proprietor of a 2 bedroom flat in Haltwhistle on the market with a lease of fraction over 72 years left. Alex informally contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Alex to invoke his statutory right. Alex obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Dr Jodie Robinson moved into a studio apartment in Haltwhistle in February 1997. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable properties in Haltwhistle with an extended lease were worth £285,000. The average amount of ground rent was £55 invoiced monthly. The lease elapsed on 19 November 2105. Taking into account 80 years remaining we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Mr and Mrs. P Ramírez purchased a purpose-built apartment in Haltwhistle in July 2003. The question was if we could estimate the premium would likely be to extend the lease by 90 years. Comparative residencies in Haltwhistle with 100 year plus lease were in the region of £200,800. The average ground rent payable was £65 collected annually. The lease terminated on 28 October 2085. Having 60 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 not including expenses.