With a long leasehold premises in Hanham, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years remaining. Residents in Hanham with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has less than eighty years outstanding, under the current statute the landlord can calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
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 conveyancing solicitor we work with provide it.
Alexander owned a high value flat in Hanham on the market with a lease of just over fifty eight years outstanding. Alexander informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Alexander to invoke his statutory right. Alexander obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Mr and Mrs. D Allen was assigned a lease of a one bedroom flat in Hanham in November 1998. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Similar residencies in Hanham with 100 year plus lease were valued around £246,800. The average ground rent payable was £60 collected per annum. The lease terminated on 18 January 2076. Given that there were 50 years unexpired we estimated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 not including professional charges.
Last month we were phoned by Mr and Mrs. O Nelson , who moved into a newly refurbished apartment in Hanham in May 2009. The question was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable flats in Hanham with an extended lease were worth £208,200. The average ground rent payable was £65 invoiced every twelve months. The lease expired on 12 April 2087. Considering the 61 years as a residual term we estimated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including professional charges.