Highnam leases on domestic deteriorating in value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' in addition to 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. Leasehold owners in Highnam will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are prescribed timetables and formalities to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Highnam can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in this area.
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 Highnam lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Freddie owned a high value apartment in Highnam being sold with a lease of just over 59 years unexpired. Freddie on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Freddie to invoke his statutory right. Freddie procured expert advice and was able to make a more informed decision and handle with the matter and sell the property.
Dr Hannah Sharif purchased a studio apartment in Highnam in November 2001. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Highnam with an extended lease were in the region of £243,000. The average ground rent payable was £65 collected yearly. The lease lapsed in 2089. Given that there were 63 years as a residual term we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 not including fees.
In 2012 we were contacted by Mr and Mrs. H Girard who, having acquired a ground floor apartment in Highnam in March 2009. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Similar premises in Highnam with an extended lease were worth £181,600. The mid-range ground rent payable was £55 invoiced quarterly. The lease terminated in 2078. Given that there were 52 years remaining we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.