Helsby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Helsby enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Helsby you must investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Helsby leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Helsby 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.
Following lengthy discussions with the freeholder of her first floor apartment in Helsby, Leah initiated the lease extension process just as her lease was approaching the critical eighty-year mark. The lease extension was concluded in March 2007. The freeholder’s charges were restricted to about 450 GBP.
Last Christmas we were e-mailed by Mr and Mrs. S Edwards , who moved into a basement apartment in Helsby in July 2005. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparative homes in Helsby with a long lease were in the region of £191,400. The average amount of ground rent was £55 billed quarterly. The lease lapsed on 13 August 2080. Having 54 years unexpired we calculated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 plus fees.
Dr Isaac White moved into a purpose-built apartment in Helsby in October 2008. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Helsby with 100 year plus lease were valued about £295,000. The mid-range amount of ground rent was £45 billed annually. The lease expired on 27 June 2100. Given that there were 74 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.