On the balance of probabilities if you own a flat in Highnam you actually own a long leasehold interest over your property
Leasehold properties in Highnam with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Highnam can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 a wealth of experience procuring Highnam lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Mason, came dangerously near to the eighty-year mark with the lease on his first floor flat in Highnam. In buying his property two decades ago, the unexpired term was of minimal relevance. Fortunately, he recognised he needed to take steps soon on a lease extension. Mason extended the lease just in the nick of time last July. Mason and the landlord who owned the flat above eventually settled on an amount of £5,000 . If the lease had gone below 80 years, the price would have become more exhorbitant by a minimum £1,100.
Mr and Mrs. P Murphy moved into a first floor flat in Highnam in February 2004. The question was if we could approximate the price could be to extend the lease by 90 years. Comparable premises in Highnam with an extended lease were worth £210,000. The average ground rent payable was £50 invoiced monthly. The lease finished in 2106. Taking into account 80 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.
In 2011 we were phoned by Mrs J Fournier who, having acquired a garden apartment in Highnam in August 1998. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Similar residencies in Highnam with an extended lease were valued around £275,000. The mid-range amount of ground rent was £45 invoiced annually. The lease termination date was on 25 July 2095. Taking into account 69 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.