Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Hanham. Clearly, the length of lease remaining shortens over time. This is often ignored and only becomes a problem when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Hanham have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. You should give due attention before delaying your Hanham lease extension. Putting off the cost now simply increases the price you will eventually incur to extend your lease
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Godiva Mortgages | 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Hanham,the lease extension lawyers 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 Hanham valuers.
Following lengthy negotiations with the freeholder of her leasehold flat in Hanham, Morgan commenced the lease extension process just as her lease was approaching the all-important 80-year deadline. The legal work was concluded in July 2008. The landlord’s fees were negotiated to less than 500 pounds.
Last March we were phoned by Mr G Martinez , who was assigned a lease of a purpose-built flat in Hanham in October 2003. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable residencies in Hanham with an extended lease were in the region of £270,000. The average ground rent payable was £55 invoiced per annum. The lease concluded on 23 June 2101. Considering the 76 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Last Christmas we were contacted by Mrs Kirsty Lefebvre , who moved into a recently refurbished apartment in Hanham in May 2012. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Comparative residencies in Hanham with an extended lease were worth £176,200. The average ground rent payable was £65 collected yearly. The lease expired on 5 April 2081. Given that there were 56 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of legals.