The closer a residential lease in Haltwhistle nears to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 125 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Haltwhistle will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Haltwhistle with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 conveyancing solicitors that we work with procure 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 lawyer we work with provide it.
Two years ago Aaron, came perilously close to the 80-year threshold with the lease on his first floor flat in Haltwhistle. Having bought his home 19 years previously, the length of the lease was of little significance. Fortunately, he noticed he would imminently be paying way over the odds for Extending the lease. Aaron arranged for a lease extension at the eleventh hour in July. Aaron and the freeholder subsequently agreed on an amount of £5,500 . If the lease had gone lower than eighty years, the figure would have increased by at least £850.
Last Christmas we were e-mailed by Dr Naomi Vincent , who purchased a one bedroom flat in Haltwhistle in March 2004. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable residencies in Haltwhistle with an extended lease were worth £245,000. The mid-range ground rent payable was £50 collected per annum. The lease concluded on 18 September 2093. Taking into account 68 years remaining we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
Ms N Miller took over the lease of a one bedroom apartment in Haltwhistle in January 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparable flats in Haltwhistle with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease ran out in 2104. Taking into account 79 years remaining we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including costs.