Hanham leases on residential properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Hanham will usually qualify for a lease extension; however a solicitor will check your eligibility. In certain cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold properties in Hanham with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Hanham 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.
Two years ago Aaron, came seriously close to the eighty-year mark with the lease on his studio flat in Hanham. In buying his property two decades ago, the length of the lease was of minimal concern. As luck would have it, he recognised he needed to take action soon on a lease extension. Aaron arranged for a lease extension at the eleventh hour last May. Aaron and the landlord in the end agreed on a premium of £5,500 . If he not met the deadline, the figure would have become more exhorbitant by a minimum £875.
Dr N Stewart took over the lease of a garden flat in Hanham in September 2003. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Identical properties in Hanham with 100 year plus lease were worth £237,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ran out in 2092. Given that there were 67 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 plus legals.
Last November we were approach by Dr I Pérez , who moved into a recently refurbished flat in Hanham in June 1995. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Comparable properties in Hanham with a long lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease ran out on 2 February 2102. Having 77 years remaining we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.