Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Huyton. Inevitably, the period of lease left reduces over time. This may pass by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Huyton have the right to extend the lease for a further ninety years under legislation. You should give careful deliberation before delaying your Huyton lease extension. Holding off that expense now likely increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of 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. |
| 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.
Last year Reuben, came precariously close to the 80-year threshold with the lease on his purpose- built apartment in Huyton. Having purchased his flat 19 years ago, the lease term was of no relevance. As luck would have it, it dawned on him that he would soon be paying an escalated premium for a lease extension. Reuben was able to extend his lease just under the wire in September. Reuben and the freeholder via the managing agents in the end agreed on a premium of £6,000 . If he had missed the deadline, the figure would have gone up by a minimum £1,025.
Last month we were phoned by Ms Georgina Harris , who moved into a recently refurbished flat in Huyton in July 2009. The dilemma was if we could estimate the price could be for a ninety year lease extension. Similar premises in Huyton with a long lease were in the region of £213,600. The average ground rent payable was £60 billed yearly. The lease elapsed on 13 January 2083. Taking into account 57 years unexpired we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of expenses.
In 2014 we were approached by Mr and Mrs. T Vincent who, having owned a one bedroom apartment in Huyton in September 1996. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Similar properties in Huyton with 100 year plus lease were valued around £200,000. The mid-range amount of ground rent was £50 billed yearly. The lease terminated in 2103. Given that there were 77 years remaining we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.