Haxby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Haxby enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Haxby you would be well advised to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
In the wake of 9 months of protracted discussions with the landlord of her ground floor apartment in Haxby, Jodie commenced the lease extension process just as her lease was approaching the critical eighty-year deadline. The transaction was finalised in September 2012. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were contacted by Mr and Mrs. E Williams , who owned a studio apartment in Haxby in January 2012. We are asked if we could estimate the price could be to extend the lease by an additional years. Comparative premises in Haxby with a long lease were in the region of £171,800. The average amount of ground rent was £55 billed every twelve months. The lease termination date was on 2 March 2075. Given that there were 50 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 plus fees.
Mr and Mrs. C Clarke moved into a purpose-built apartment in Haxby in July 2006. The question was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Identical premises in Haxby with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease finished on 8 June 2095. Considering the 70 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.