The re-sale value of a leasehold property in Huyton is impacted by how many years the lease has remaining. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that all matters can be addressed well before the 80 year mark. Leasehold Reform legislation enables Huyton qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Huyton 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.
Trailing unsuccessful negotiations with the freeholder of her garden flat in Huyton, Maisie initiated the lease extension process just as the lease was nearing the critical eighty-year threshold. The transaction was concluded in October 2013. The freeholder’s charges were kept to an absolute minimum.
Last month we were e-mailed by Mr and Mrs. M Davies , who acquired a first floor apartment in Huyton in September 1998. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparable properties in Huyton with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ended on 27 June 2097. Having 72 years remaining we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including fees.
Last Spring we were approach by Mr and Mrs. O Lee , who completed a recently refurbished flat in Huyton in February 2010. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable flats in Huyton with an extended lease were in the region of £233,200. The mid-range ground rent payable was £60 billed per annum. The lease came to a finish on 22 April 2086. Taking into account 61 years unexpired we estimated the premium to the landlord to extend the lease to be within £22,800 and £26,400 plus costs.