For those whose Helsby home is held on a long lease, the message is clear – if you do nothing, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold residencies in Helsby with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Helsby can be a difficult process. We recommend you secure 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.
Daniel owned a 2 bedroom apartment in Helsby on the market with a lease of just over 61 years unexpired. Daniel informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Daniel to exercise his statutory right. Daniel obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2011 we were approached by Dr F Peterson who, having owned a one bedroom apartment in Helsby in October 2005. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical premises in Helsby with a long lease were worth £265,200. The mid-range ground rent payable was £65 collected per annum. The lease end date was in 2092. Given that there were 66 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 not including professional charges.
Mr and Mrs. M Sharif was assigned a lease of a one bedroom flat in Helsby in June 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Helsby with a long lease were in the region of £198,800. The mid-range ground rent payable was £55 billed yearly. The lease elapsed in 2081. Considering the 55 years unexpired we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of professional charges.