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 your lease gets more expensive. It is the case that most Helsby tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Helsby you really ought to check if your lease has between seventy and ninety years remaining. There are good reasons why a Helsby leaseholder with a lease having around eighty years left should take steps to make sure that a lease extension is effected without delay
Leasehold properties in Helsby with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
Following unsuccessful negotiations with the freeholder of her studio flat in Helsby, Jessica initiated the lease extension process as the 80 year deadline was rapidly nearing. The transaction was concluded in May 2009. The freeholder’s fees were kept to an absolute minimum.
Mr D Morris took over the lease of a ground floor apartment in Helsby in January 1998. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable homes in Helsby with 100 year plus lease were valued about £189,000. The average amount of ground rent was £55 collected quarterly. The lease concluded on 22 September 2077. Considering the 53 years unexpired we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including expenses.
Last month we were phoned by Dr B Lee , who took over the lease of a studio apartment in Helsby in March 1999. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Similar residencies in Helsby with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected monthly. The lease ended on 20 July 2097. Taking into account 73 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.