Huyton leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Huyton will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and formalities to follow once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Huyton with over one hundred years remaining on the lease are often 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 service charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle 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 lawyer we work with provide it.
Leon owned a studio apartment in Huyton on the market with a lease of just over fifty eight years unexpired. Leon informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leon to exercise his statutory right. Leon obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Mrs A King moved into a basement flat in Huyton in July 2001. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable premises in Huyton with 100 year plus lease were valued about £280,000. The average amount of ground rent was £45 invoiced annually. The lease elapsed on 2 July 2095. Having 69 years remaining we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
In 2011 we were approached by Mr and Mrs. G Phillips who, having purchased a one bedroom flat in Huyton in April 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparable properties in Huyton with 100 year plus lease were in the region of £216,000. The average amount of ground rent was £60 billed quarterly. The lease terminated in 2084. Considering the 58 years remaining we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.