It’s a harsh truth that a Huyton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Huyton property market.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining slips under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Huyton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 lawyers 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 conveyancer we work with provide it.
During the course of the last few months Ethan, started to get near to the 80-year threshold with the lease on his leasehold flat in Huyton. In buying his home two decades ago, the lease term was of minimal relevance. Thankfully, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Ethan extended the lease just under the wire in July. Ethan and the freeholder via the management company subsequently settled on an amount of £5,500 . If he had missed the deadline, the price would have become more costly by a minimum £975.
Mr E Roux moved into a recently refurbished flat in Huyton in September 2007. The question was if we could estimate the price would be to extend the lease by an additional years. Comparative flats in Huyton with 100 year plus lease were valued about £285,000. The average amount of ground rent was £45 billed monthly. The lease expired on 7 October 2097. Given that there were 71 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.
Mr L Clarke moved into a one bedroom apartment in Huyton in November 2007. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Huyton with a long lease were in the region of £233,200. The average amount of ground rent was £60 billed yearly. The lease ended in 2087. Taking into account 61 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of legals.