Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Highnam. Inevitably, the period of lease remaining shortens over time. This may slip by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Eligible leaseholders in Highnam have the legal entitlement to extend the lease for an additional ninety years under statute. Please give careful attention before putting off your Highnam lease extension. Holding off the cost now only increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Highnam with more than 100 years outstanding 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a landlord 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.
Following unsuccessful correspondence with the landlord of her first floor flat in Highnam, Madeleine initiated the lease extension process just as the lease was nearing the critical eighty-year mark. The lease extension was finalised in September 2013. The landlord’s costs were negotiated to slightly above 550 GBP.
In 2009 we were contacted by Dr O Bertrand who, having completed a garden flat in Highnam in July 2002. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Highnam with 100 year plus lease were in the region of £208,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease elapsed on 22 February 2083. Given that there were 57 years left we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of legals.
Last year we were e-mailed by Ms Isabelle Campbell , who was assigned a lease of a one bedroom apartment in Highnam in April 2009. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Similar homes in Highnam with 100 year plus lease were valued around £200,000. The mid-range amount of ground rent was £50 collected per annum. The lease ran out in 2103. Taking into account 77 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.