It’s a harsh truth that a Huyton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Huyton property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be due. Most flat owners in Huyton will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Huyton with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Huyton leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted negotiations with the freeholder of her two bedroom apartment in Huyton, Ellen initiated the lease extension process just as her lease was nearing the critical eighty-year threshold. The legal work was concluded in July 2005. The landlord’s charges were kept to an absolute minimum.
Dr P Lefèvre completed a recently refurbished apartment in Huyton in April 1995. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Comparable premises in Huyton with an extended lease were in the region of £216,000. The mid-range ground rent payable was £60 invoiced monthly. The lease ran out on 4 May 2084. Considering the 58 years remaining we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including professional charges.
In 2013 we were e-mailed by Dr Harry Martin who, having took over the lease of a basement apartment in Huyton in October 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Identical premises in Huyton with a long lease were in the region of £205,000. The average ground rent payable was £50 billed quarterly. The lease expired in 2104. Given that there were 78 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 exclusive of fees.