The value of Halifax leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is below than eighty years
Leasehold residencies in Halifax with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Regardless of whether you are a tenant or a landlord in Halifax,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Halifax valuers.
Subsequent to unsuccessful negotiations with the landlord of her studio flat in Halifax, Paige started the lease extension process just as her lease was nearing the crucial eighty-year deadline. The lease extension was concluded in September 2011. The landlord’s costs were kept to an absolute minimum.
Last year we were called by Ms Eleanor Collins , who purchased a one bedroom flat in Halifax in April 2011. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar flats in Halifax with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease ran out on 16 November 2100. Considering the 75 years remaining we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.
Last year we were phoned by Dr Riley Brown , who owned a newly refurbished apartment in Halifax in September 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Halifax with an extended lease were worth £250,400. The mid-range amount of ground rent was £65 collected quarterly. The lease ended in 2089. Taking into account 64 years as a residual term we estimated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including fees.