Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Histon. Clearly, the length of lease left shortens over time. This may slip by relatively unnoticed when the property needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Histon have the legal entitlement to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give careful attention before putting off your Histon lease extension. Putting off the cost now likely increases the price you will eventually incur for a lease extension
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Histon can be a difficult process. We recommend you procure professional help from a lawyer and valuer 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 a wealth of experience procuring Histon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harrison was the the leasehold owner of a conversion apartment in Histon on the market with a lease of fraction over 61 years left. Harrison informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Harrison to exercise his statutory right. Harrison obtained expert advice and secured an acceptable deal informally and readily saleable.
Last Autumn we were e-mailed by Mrs Alexandra Rivera , who moved into a basement flat in Histon in July 1996. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative flats in Histon with an extended lease were in the region of £193,400. The mid-range ground rent payable was £65 billed annually. The lease expired in 2084. Given that there were 59 years left we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of legals.
Last Winter we were e-mailed by Dr Charlie Bonnet , who moved into a one bedroom apartment in Histon in July 2009. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative homes in Histon with an extended lease were in the region of £250,000. The average amount of ground rent was £50 billed monthly. The lease terminated in 2095. Given that there were 70 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.