Huyton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Huyton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Huyton you should see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Huyton leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay
Leasehold premises in Huyton with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Huyton can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Subsequent to unsuccessful discussions with the landlord of her one bedroom apartment in Huyton, Charlotte initiated the lease extension process as the 80 year threshold was quickly coming. The legal work was finalised in February 2012. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were phoned by Mr and Mrs. I Wilson who, having bought a one bedroom apartment in Huyton in January 2004. The question was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable flats in Huyton with an extended lease were worth £205,000. The average amount of ground rent was £50 invoiced monthly. The lease terminated in 2104. Considering the 79 years remaining we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
Mr and Mrs. C Thomas took over the lease of a one bedroom flat in Huyton in June 1996. The question was if we could approximate the price could be to prolong the lease by an additional years. Comparative flats in Huyton with a long lease were valued about £275,000. The average amount of ground rent was £65 invoiced monthly. The lease ran out on 21 August 2093. Having 68 years unexpired we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.