For anyone whose Highnam property is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| National Westminster Bank | |
| Skipton Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Engaging our service will provide you enhanced control over the value of your Highnam leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Harry owned a 2 bedroom flat in Highnam on the market with a lease of fraction over sixty years left. Harry on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Harry to invoke his statutory right. Harry procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Last Autumn we were called by Ms Lucy Morris , who owned a recently refurbished flat in Highnam in March 2011. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable homes in Highnam with a long lease were worth £260,200. The average ground rent payable was £65 billed annually. The lease came to a finish in 2092. Having 66 years left we approximated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 plus professional charges.
Last Autumn we were phoned by Mrs T Evans , who took over the lease of a purpose-built apartment in Highnam in August 2008. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical premises in Highnam with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 collected annually. The lease concluded on 5 January 2081. Taking into account 55 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 not including expenses.