On the balance of probabilities if you own a flat in Highnam you actually own a long leasehold interest over your property
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Highnam,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Highnam valuers.
During the course of the last few months Finn, came precariously close to the eighty-year threshold with the lease on his garden flat in Highnam. In buying his property two decades ago, the lease term was of little importance. Fortunately, he noticed he would soon be paying way over the odds for Extending the lease. Finn extended the lease just under the wire last August. Finn and the freeholder subsequently settled on sum of £5,500 . If the lease had slipped lower than eighty years, the amount would have gone up by a minimum £1,000.
In 2014 we were e-mailed by Mr and Mrs. G Lefebvre who, having owned a recently refurbished apartment in Highnam in September 2001. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable homes in Highnam with a long lease were worth £267,600. The mid-range ground rent payable was £65 collected every twelve months. The lease expired in 2091. Given that there were 67 years left we estimated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of legals.
In 2010 we were e-mailed by Ms L Thompson who, having bought a ground floor flat in Highnam in November 2009. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Identical properties in Highnam with a long lease were valued about £201,200. The average ground rent payable was £55 collected monthly. The lease terminated in 2080. Taking into account 56 years outstanding we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus professional charges.