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 cost of a lease extension can increase significantly once the remaining term is below than eighty years
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 guidance from a conveyancing solicitor 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 Highnam lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the freeholder of her garden flat in Highnam, Freya started the lease extension process just as the lease was nearing the crucial 80-year threshold. The transaction was finalised in February 2012. The freeholder’s fees were kept to an absolute minimum.
Last year we were contacted by Ms T Mason , who owned a recently refurbished flat in Highnam in October 2010. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical properties in Highnam with a long lease were in the region of £275,000. The mid-range ground rent payable was £45 billed quarterly. The lease lapsed in 2095. Having 69 years left we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.
Last Autumn we were called by Mr and Mrs. T Parker , who owned a ground floor flat in Highnam in July 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Similar residencies in Highnam with 100 year plus lease were in the region of £216,000. The mid-range ground rent payable was £60 invoiced annually. The lease came to a finish in 2084. Taking into account 58 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.