When it comes to long leasehold property in Histon, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years left. Leasehold owners in Histon with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has under 80 years remaining, under the current statute the freeholder is entitled to calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Histon with more than one hundred years unexpired 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service will provide you increased control over the value of your Histon leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Stanley owned a conversion flat in Histon on the market with a lease of fraction over fifty eight years unexpired. Stanley on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Stanley to invoke his statutory right. Stanley obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2012 we were contacted by Mrs Louise Bonnet who, having bought a one bedroom flat in Histon in October 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Identical properties in Histon with 100 year plus lease were worth £237,600. The average ground rent payable was £45 billed annually. The lease end date was on 3 February 2092. Given that there were 67 years remaining we estimated the premium to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of professional charges.
Mr and Mrs. E Mitchell owned a garden flat in Histon in August 2001. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparative premises in Histon with a long lease were valued around £280,000. The average ground rent payable was £55 collected quarterly. The lease concluded on 10 September 2103. Given that there were 78 years remaining we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus legals.