The re-sale value of a leasehold property in Huyton is impacted by how long the lease has left to run. If it is close to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that all matters can be concluded prior to the 80 year mark. Statute enables Huyton qualifying lessees to obtain a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Huyton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Huyton valuers.
Trailing lengthy negotiations with the freeholder of her basement apartment in Huyton, Morgan started the lease extension process as the 80 year threshold was rapidly advancing. The legal work was concluded in September 2015. The landlord’s charges were kept to an absolute minimum.
Last year we were e-mailed by Mr and Mrs. J Girard , who acquired a first floor apartment in Huyton in July 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar flats in Huyton with an extended lease were worth £181,600. The average amount of ground rent was £55 invoiced monthly. The lease concluded on 15 March 2077. Considering the 52 years unexpired we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of fees.
Mr and Mrs. N Martin owned a studio apartment in Huyton in July 2002. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Similar homes in Huyton with 100 year plus lease were valued about £290,000. The mid-range ground rent payable was £45 collected quarterly. The lease terminated in 2097. Given that there were 72 years left we calculated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus expenses.