Histon Lease Extension - Free Consultation

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Main reasons to commence your Histon lease extension


Main reasons to commence your Histon lease extension today:

Increase your lease and increase your Histon property value

With a residential leasehold premises in Histon, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may 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 increases markedly notably when there are less than eighty years left. Anyone in Histon with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When a lease has fewer than 80 years left, under the current statute the freeholder can calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.

Histon property with a lease extension is almost the same value as a freehold

It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years in the future.

Mortgage lenders will not loan monies on a short lease

Banks and Building Societies are less likely to issue a mortgage on a residential property in Histon with a short lease. Many lenders simply refuse to lend on leases with less than 75 years remaining.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Santander You must report the unexpired lease term to us and await our instructions if:
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
Royal Bank of Scotland Mortgage term plus 30 years.

Get in touch with one of our Histon lease extension solicitors or enfranchisement solicitors

The lawyers that we work with undertake Histon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Histon Lease Extension Example Cases:

Riley, Histon, Cambridgeshire,

Riley owned a studio apartment in Histon being marketed with a lease of a few days over sixty years unexpired. Riley on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Riley to exercise his statutory right. Riley 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.

Histon case:

Last Summer we were e-mailed by Dr S King , who was assigned a lease of a basement apartment in Histon in June 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Histon with an extended lease were worth £176,200. The average amount of ground rent was £65 invoiced yearly. The lease lapsed in 2080. Considering the 56 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of fees.

Histon case:

Mr and Mrs. F Stewart owned a purpose-built apartment in Histon in November 1995. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar homes in Histon with 100 year plus lease were valued about £237,600. The mid-range ground rent payable was £45 invoiced annually. The lease ran out on 17 September 2091. Considering the 67 years left we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus legals.