Halifax leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease drops below 80 years - otherwise a higher amount will be due. Flat owners in Halifax will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not qualify. There are prescribed deadlines and formalities to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Halifax,the lease extension experts 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.
Trailing protracted discussions with the landlord of her first floor flat in Halifax, Daisy initiated the lease extension process as the 80 year deadline was fast nearing. The transaction completed in January 2012. The landlord’s fees were restricted to under five hundred pounds.
In 2009 we were phoned by Mr and Mrs. M Martin who, having bought a newly refurbished apartment in Halifax in July 2012. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Comparative premises in Halifax with an extended lease were in the region of £216,000. The average ground rent payable was £60 collected monthly. The lease concluded in 2082. Taking into account 58 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus costs.
Last Christmas we were contacted by Dr H Rodríguez , who acquired a recently refurbished apartment in Halifax in September 2010. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparable premises in Halifax with 100 year plus lease were valued about £200,000. The average amount of ground rent was £50 collected yearly. The lease concluded on 23 March 2102. Having 78 years left we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.