Huyton residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold properties in Huyton with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying 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. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Huyton can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor 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 dealing with Huyton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ali owned a conversion apartment in Huyton being marketed with a lease of just over 61 years left. Ali on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms 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 Ali to exercise his statutory right. Ali obtained expert advice and secured an acceptable resolution without going to tribunal and sell the flat.
Last Winter we were contacted by Mr and Mrs. G Campbell , who purchased a purpose-built apartment in Huyton in October 2007. We are asked if we could estimate the price could be to prolong the lease by an additional years. Similar homes in Huyton with an extended lease were valued around £290,000. The mid-range amount of ground rent was £45 billed per annum. The lease expiry date was in 2099. Considering the 73 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Dr Benjamin Martinez took over the lease of a ground floor flat in Huyton in January 1999. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical premises in Huyton with 100 year plus lease were worth £240,600. The average ground rent payable was £65 collected annually. The lease ran out on 1 March 2088. Having 62 years remaining we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of fees.