Stop! Your Lease Extension in Highnam Could Be FREE

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Many leaseholders in Highnam are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Highnam has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to start your Highnam lease extension

Main reasons to commence your Highnam lease extension today:

Increase your lease and increase your Highnam property value

The market value of Highnam leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than 80 years

Highnam property with a lease extension is almost the same value as a freehold

Leasehold residencies in Highnam with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Banks and Building Societies may decide not to issue a mortgage on a short lease

Most high street banks are tightening their criteria and a meaningful number now expect flats to have a minimum of 60 if not 70 years remaining at the end of the mortgage. Considering many flats in Highnam were built in the fifties, sixties and seventies as a result many now need to be extended if they wish to obtain a mortgage.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
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.
Santander

If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest.

You must report the unexpired lease term to us and await our instructions if: 
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided.
 


We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.

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.

What makes us experts in Highnam lease extensions?

Irrespective of whether you are a tenant or a freeholder in Highnam,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Highnam valuers.

Highnam Lease Extension Case Summaries:

Evan, Highnam, Gloucestershire

Half a year ago Evan, started to get close to the 80-year threshold with the lease on his first floor flat in Highnam. Having bought his home twenty years ago, the lease term was of no concern. Luckily, he recognised he would imminently be paying way over the odds for Extending the lease. Evan extended the lease at the eleventh hour last August. Evan and the landlord who owned the flat above eventually agreed on sum of £6,000 . If he had missed the deadline, the amount would have gone up by at least £900.

Highnam case:

Mrs S Lee took over the lease of a purpose-built flat in Highnam in May 2006. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical premises in Highnam with 100 year plus lease were in the region of £198,800. The mid-range amount of ground rent was £55 invoiced monthly. The lease terminated in 2081. Given that there were 55 years outstanding we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of professional charges.

Highnam case:

Mr and Mrs. V Collins took over the lease of a newly refurbished apartment in Highnam in February 1998. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparable residencies in Highnam with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ended in 2101. Having 75 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.