There is no doubt about it a leasehold property in Hanham is a wasting asset as a result of the diminishing lease term. If the lease has, more than 100 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner than later. Many flat owners in Hanham will qualify for this right; nevertheless a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Hanham with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Hanham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hanham valuers.
Alfie owned a 2 bedroom apartment in Hanham being marketed with a lease of a little over 72 years remaining. Alfie on an informal basis approached his freeholder being a well known London-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 new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alfie to exercise his statutory right. Alfie obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Last May we were called by Mr Ibrahim Mason , who acquired a recently refurbished apartment in Hanham in January 2005. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparable residencies in Hanham with an extended lease were worth £208,200. The mid-range amount of ground rent was £65 billed quarterly. The lease came to a finish on 26 February 2087. Given that there were 61 years left we approximated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of costs.
Last Autumn we were called by Dr Isabel Adams , who took over the lease of a one bedroom flat in Hanham in April 2001. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Comparable properties in Hanham with a long lease were worth £260,000. The average amount of ground rent was £50 billed yearly. The lease lapsed in 2098. Given that there were 72 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.