It’s an underpublicised truth that a Helsby residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Helsby property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Helsby will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Helsby with more than one hundred years outstanding 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a freeholder in Helsby,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Helsby valuers.
After lengthy correspondence with the landlord of her two bedroom apartment in Helsby, Isabel initiated the lease extension process just as her lease was approaching the critical eighty-year mark. The legal work was finalised in March 2007. The landlord’s costs were kept to an absolute minimum.
Mrs Stephanie Rose acquired a ground floor apartment in Helsby in October 2006. The dilemma was if we could approximate the price would be to extend the lease by ninety years. Comparative properties in Helsby with a long lease were valued about £275,000. The average ground rent payable was £65 collected yearly. The lease terminated on 26 August 2093. Considering the 68 years remaining we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.
Mr Hugo Cox bought a garden flat in Helsby in February 1998. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical flats in Helsby with 100 year plus lease were valued around £208,600. The average amount of ground rent was £60 collected annually. The lease finished on 6 March 2082. Given that there were 57 years left we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of expenses.