Halkyn leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Halkyn will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not qualify. There are also strict deadlines and steps to follow once the process has started so it’s best to be guided by a lawyer during the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers 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 conveyancing solicitor we work with provide it.
Toby was the the leasehold proprietor of a conversion flat in Halkyn on the market with a lease of a few days over 61 years unexpired. Toby on an informal basis contacted his landlord being a well known Manchester-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 rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Toby to exercise his statutory right. Toby obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
Mr T Khan took over the lease of a garden flat in Halkyn in September 2010. The question was if we could approximate the premium would be for a 90 year extension to my lease. Comparable premises in Halkyn with a long lease were valued around £275,000. The average ground rent payable was £45 billed annually. The lease terminated on 18 February 2094. Having 69 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.
Last month we were called by Dr Joseph Hernández , who acquired a recently refurbished apartment in Halkyn in November 2002. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative residencies in Halkyn with 100 year plus lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected monthly. The lease lapsed in 2083. Given that there were 58 years remaining we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus legals.