Chances are that where you own a flat in Highcliffe you actually own a long leasehold interest over your property
Leasehold residencies in Highcliffe with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Highcliffe can be a difficult process. We recommend you get guidance from a lawyer 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 dealing with Highcliffe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted discussions with the landlord of her studio flat in Highcliffe, Amelia commenced the lease extension process just as her lease was coming close to the all-important 80-year threshold. The lease extension was finalised in January 2011. The freeholder’s charges were negotiated to approximately 650 GBP.
In 2011 we were contacted by Mr and Mrs. P Nelson who, having moved into a one bedroom flat in Highcliffe in September 1997. The question was if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Identical flats in Highcliffe with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease elapsed on 18 June 2105. Considering the 80 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.
Mr Andrew Moreau moved into a one bedroom apartment in Highcliffe in February 2010. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparable residencies in Highcliffe with an extended lease were valued around £200,800. The average amount of ground rent was £65 collected monthly. The lease end date was in 2085. Given that there were 60 years unexpired we estimated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including fees.