With a residential leasehold premises in Huyton, you are actually buying a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than eighty years remaining. Residents in Huyton with a lease approaching 81 years left should seriously consider extending it sooner as opposed to later. Once the lease term has under 80 years left, under the relevant statute the freeholder can calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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 |
| 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 Huyton can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in this area.
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 a wealth of experience procuring Huyton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Owen, started to get near to the 80-year mark with the lease on his first floor flat in Huyton. In buying his property twenty years ago, the lease term was of little bearing. Luckily, he recognised he would imminently be paying an escalated premium for a lease extension. Owen extended the lease at the eleventh hour last September. Owen and the freeholder subsequently agreed on sum of £5,500 . If the lease had slipped below 80 years, the premium would have become more costly by at least £1,150.
Mr Blake Bennett moved into a newly refurbished apartment in Huyton in January 2005. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Similar premises in Huyton with an extended lease were valued around £275,000. The mid-range ground rent payable was £65 invoiced monthly. The lease elapsed on 1 August 2093. Given that there were 68 years remaining we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.
In 2014 we were e-mailed by Mr and Mrs. P Hall who, having completed a ground floor flat in Huyton in January 2005. The question was if we could approximate the premium would be to prolong the lease by ninety years. Comparative flats in Huyton with an extended lease were valued about £213,600. The average ground rent payable was £60 collected per annum. The lease lapsed on 24 January 2082. Taking into account 57 years outstanding we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including fees.