With a long leasehold premises in Huyton, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years left. Anyone in Huyton with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has under 80 years remaining, under the current legislation the landlord is entitled to calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Huyton can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Huyton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Hugo, started to get close to the 80-year mark with the lease on his studio apartment in Huyton. In buying his flat 18 years previously, the lease term was of little bearing. As luck would have it, he recognised he would imminently be paying an escalated premium for Extending the lease. Hugo extended the lease at the eleventh hour in March. Hugo and the freeholder via the management company ultimately settled on sum of £6,000 . If he not met the deadline, the figure would have increased by a minimum £1,125.
Mr I Morgan moved into a studio apartment in Huyton in May 2005. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Similar flats in Huyton with 100 year plus lease were valued about £280,000. The average amount of ground rent was £45 invoiced per annum. The lease expired in 2093. Having 69 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.
In 2009 we were called by Mr Dexter Mercier who, having completed a studio flat in Huyton in April 2009. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative premises in Huyton with a long lease were valued about £216,000. The average amount of ground rent was £60 collected quarterly. The lease concluded in 2082. Given that there were 58 years remaining we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.