Highnam leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Highnam will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some situations you may not be entitled. There are prescribed timetables and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Highnam with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Skipton Building Society | |
| TSB | |
| Yorkshire Building Society |
Retaining our service will provide you enhanced control over the value of your Highnam leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the freeholder of her two bedroom apartment in Highnam, Rebecca commenced the lease extension process just as her lease was nearing the all-important 80-year deadline. The legal work was finalised in May 2009. The freeholder’s charges were negotiated to below five hundred pounds.
In 2011 we were called by Mr Daniel Roux who, having purchased a garden apartment in Highnam in June 2004. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable residencies in Highnam with an extended lease were worth £295,000. The mid-range ground rent payable was £45 collected quarterly. The lease finished on 8 July 2100. Given that there were 74 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Dr D Howard completed a purpose-built flat in Highnam in August 2000. We are asked if we could approximate the premium would be to extend the lease by ninety years. Similar homes in Highnam with a long lease were in the region of £243,000. The average amount of ground rent was £65 collected annually. The lease expiry date was on 15 September 2089. Considering the 63 years remaining we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of fees.