Chances are that where you own a flat in Huyton you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property 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; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Using our service will provide you increased control over the value of your Huyton leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Matthew, came dangerously close to the 80-year mark with the lease on his purpose- built flat in Huyton. Having purchased his flat two decades ago, the length of the lease was of minimal significance. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Matthew extended the lease at the eleventh hour last January. Matthew and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If he failed to meet the deadline, the price would have escalated by a minimum £975.
Dr Abbie Evans owned a one bedroom apartment in Huyton in January 1998. The question was if we could approximate the premium would likely be for a 90 year lease extension. Identical homes in Huyton with a long lease were in the region of £250,400. The average amount of ground rent was £65 collected annually. The lease lapsed on 6 June 2089. Considering the 64 years as a residual term we approximated the premium to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of fees.
In 2009 we were contacted by Mr H González who, having purchased a studio apartment in Huyton in October 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Huyton with an extended lease were in the region of £189,000. The average ground rent payable was £55 invoiced yearly. The lease termination date was on 27 March 2078. Taking into account 53 years left we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.