Histon leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Histon enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Histon you should see if your lease has between 70 and ninety years left. There are good reasons why a Histon flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is actioned without delay
Leasehold residencies in Histon with over 100 years remaining 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 to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Lease extensions in Histon can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in this area.
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.
Theo was the the leasehold owner of a 2 bedroom apartment in Histon on the market with a lease of fraction over sixty years left. Theo on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Theo to invoke his statutory right. Theo procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. E Davies was assigned a lease of a purpose-built flat in Histon in June 2007. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Identical homes in Histon with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 billed quarterly. The lease expired in 2104. Considering the 78 years unexpired we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus legals.
In 2011 we were e-mailed by Mr and Mrs. S Peterson who, having was assigned a lease of a studio flat in Histon in November 1996. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar properties in Histon with an extended lease were worth £191,000. The mid-range ground rent payable was £65 billed per annum. The lease terminated on 10 October 2084. Considering the 58 years remaining we calculated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 plus expenses.