The re-sale value of a leasehold property in Haltwhistle depends on how long the lease has remaining. If it is close to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is ideal to start the lease extension process when a lease still has 82 years to run so that all matters can be concluded well before the eighty year cut off point. Leasehold Reform legislation enables Haltwhistle qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with more than 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 residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Lease extensions in Haltwhistle can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 Haltwhistle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted correspondence with the landlord of her two bedroom flat in Haltwhistle, Louise initiated the lease extension process as the 80 year threshold was rapidly advancing. The lease extension completed in July 2009. The landlord’s charges were kept to an absolute minimum.
In 2012 we were e-mailed by Mr F Martinez who, having took over the lease of a first floor flat in Haltwhistle in August 1996. The question was if we could approximate the premium would likely be to extend the lease by ninety years. Similar properties in Haltwhistle with a long lease were valued about £256,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease came to a finish on 7 April 2078. Having 52 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 plus costs.
Mr and Mrs. L Hall took over the lease of a studio apartment in Haltwhistle in September 2002. We are asked if we could estimate the price could be to extend the lease by an additional years. Comparative residencies in Haltwhistle with 100 year plus lease were in the region of £218,000. The average amount of ground rent was £45 invoiced quarterly. The lease terminated on 21 September 2089. Given that there were 63 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 not including professional charges.