Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Haxby. Inevitably, the period of lease left reduces over time. This may slip by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Haxby have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. Do give due deliberation before delaying your Haxby lease extension. Holding off that expense now simply increases the price you will ultimately have to pay for a lease extension
Leasehold residencies in Haxby with more than 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
The conveyancers that we work with procure Haxby 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 conveyancing solicitor we work with provide it.
Toby owned a high value flat in Haxby on the market with a lease of a little over 72 years outstanding. Toby informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Toby to invoke his statutory right. Toby procured expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2011 we were e-mailed by Dr I Lefebvre who, having purchased a garden apartment in Haxby in April 1996. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar flats in Haxby with 100 year plus lease were valued around £240,600. The average ground rent payable was £65 collected annually. The lease expired in 2087. Having 62 years as a residual term we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.
Last year we were approach by Dr Liam Norbert , who acquired a first floor apartment in Haxby in May 2004. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar residencies in Haxby with a long lease were valued around £174,200. The average ground rent payable was £55 invoiced every twelve months. The lease ran out on 21 October 2076. Having 51 years outstanding we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus professional charges.