The value of Haxby leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is less than 80 years
Leasehold properties in Haxby with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 also be not less than 75 years 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 Haxby can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Haxby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
David owned a 2 bedroom flat in Haxby being sold with a lease of fraction over 72 years remaining. David on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were David to invoke his statutory right. David procured expert legal guidance and secured satisfactory resolution without going to tribunal and sell the flat.
Mr S Hernández purchased a newly refurbished flat in Haxby in February 2005. The dilemma was if we could estimate the price would be for a ninety year lease extension. Similar homes in Haxby with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £45 invoiced yearly. The lease finished on 2 November 2099. Given that there were 74 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.
In 2009 we were phoned by Ms A Walker who, having was assigned a lease of a garden flat in Haxby in January 2002. The question was if we could approximate the price could be to extend the lease by an additional years. Comparative homes in Haxby with a long lease were valued about £248,000. The average ground rent payable was £65 collected annually. The lease terminated on 26 May 2088. Taking into account 63 years remaining we calculated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 not including costs.