Helsby leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Helsby will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain cases you may not qualify. There are also strict deadlines and formalities to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold properties in Helsby with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives you better control over the value of your Helsby leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Tommy owned a conversion flat in Helsby being sold with a lease of just over sixty years remaining. Tommy informally approached his freeholder being a well known local-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 new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Tommy to invoke his statutory right. Tommy procured expert advice and secured an acceptable deal without resorting to tribunal and sell the flat.
Mr N Torres completed a purpose-built apartment in Helsby in March 1997. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Helsby with a long lease were in the region of £257,800. The average amount of ground rent was £65 collected every twelve months. The lease elapsed on 28 August 2090. Considering the 65 years left we approximated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of legals.
Mr and Mrs. Y Bennett owned a basement flat in Helsby in September 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparable residencies in Helsby with an extended lease were worth £191,400. The mid-range amount of ground rent was £55 collected every twelve months. The lease elapsed on 5 April 2079. Considering the 54 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 not including professional charges.