Halkyn leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease falls below eighty years - otherwise a higher premium will be payable. Leasehold owners in Halkyn will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some cases you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Halkyn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
During the course of the last few months Kyle, came precariously near to the 80-year mark with the lease on his leasehold apartment in Halkyn. Having purchased his home 19 years previously, the length of the lease was of minimal relevance. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Kyle extended the lease just ahead of time last May. Kyle and the freeholder via the management company in the end settled on an amount of £6,000 . If he failed to meet the deadline, the price would have escalated by at least £1,050.
Dr J White acquired a first floor flat in Halkyn in February 1997. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Halkyn with a long lease were worth £208,600. The mid-range ground rent payable was £60 collected yearly. The lease ended in 2081. Given that there were 57 years unexpired we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of legals.
Last Autumn we were e-mailed by Mr and Mrs. P Jackson , who purchased a newly refurbished flat in Halkyn in August 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable properties in Halkyn with a long lease were worth £200,000. The mid-range ground rent payable was £50 invoiced per annum. The lease termination date was in 2101. Given that there were 77 years remaining we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.