Hanham leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Hanham will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some situations you may not be entitled. There are prescribed timetables and procedures to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 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 |
|---|---|
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Hanham can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 in-depth market knowledge procuring Hanham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Charlie was the the leasehold proprietor of a studio apartment in Hanham being marketed with a lease of a little over sixty years left. Charlie on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Charlie to invoke his statutory right. Charlie procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last September we were phoned by Ms P Watson , who completed a recently refurbished flat in Hanham in February 2012. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Similar flats in Hanham with a long lease were valued around £265,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease finished on 28 November 2099. Having 73 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
In 2011 we were phoned by Mr Jack Phillips who, having owned a basement flat in Hanham in November 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Hanham with a long lease were worth £264,000. The mid-range ground rent payable was £60 collected per annum. The lease came to a finish in 2079. Having 53 years unexpired we calculated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 plus expenses.