Highnam leases on residential properties are gradually losing value. Where your lease has about 90 years left, 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 start incurring an additional element called marriage value. Leasehold owners in Highnam will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are also strict timetables and formalities to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Highnam 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 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. |
The lawyers that we work with undertake Highnam 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.
After lengthy negotiations with the freeholder of her one bedroom flat in Highnam, Charlotte started the lease extension process just as her lease was approaching the all-important 80-year mark. The legal work was concluded in February 2008. The landlord’s charges were restricted to below 500 GBP.
Mr and Mrs. M Baker bought a basement apartment in Highnam in February 2012. The question was if we could approximate the price could be for a 90 year extension to my lease. Similar homes in Highnam with 100 year plus lease were in the region of £223,400. The mid-range amount of ground rent was £60 invoiced per annum. The lease expired in 2085. Given that there were 59 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of fees.
Last Spring we were phoned by Ms S Nguyen , who owned a basement apartment in Highnam in January 2004. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar premises in Highnam with an extended lease were in the region of £205,000. The average ground rent payable was £50 invoiced annually. The lease concluded on 12 September 2105. Given that there were 79 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.