Helsby leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease dips under 80 years - otherwise a higher amount will be due. Leasehold owners in Helsby will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not qualify. There are also strict timetables and procedures to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Helsby with in excess of 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 home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Helsby can be a difficult process. We recommend you get guidance from a lawyer and surveyor 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 Helsby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Edward was the the leasehold owner of a conversion flat in Helsby being marketed with a lease of a few days over 61 years left. Edward on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Edward to invoke his statutory right. Edward procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2010 we were e-mailed by Mr and Mrs. P Moore who, having moved into a one bedroom flat in Helsby in August 2004. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar properties in Helsby with an extended lease were in the region of £216,000. The mid-range ground rent payable was £60 invoiced monthly. The lease ended in 2084. Given that there were 58 years unexpired we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.
In 2011 we were phoned by Mr Kian González who, having owned a one bedroom flat in Helsby in May 1996. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar residencies in Helsby with an extended lease were worth £205,000. The average ground rent payable was £50 collected annually. The lease ended in 2104. Given that there were 78 years as a residual term we approximated the premium to the landlord to extend the lease to be between £7,600 and £8,800 plus costs.