Histon leases on residential deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the current lease dips below 80 years - otherwise a higher amount will be payable. Leasehold owners in Histon will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain cases you may not be entitled. There are prescribed timetables and procedures to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Histon,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Histon valuers.
Last October Mason, started to get close to the 80-year threshold with the lease on his studio flat in Histon. Having purchased his property two decades ago, the length of the lease was of minimal interest. Luckily, he recognised he needed to take action soon on a lease extension. Mason extended the lease just under the wire in July. Mason and the landlord who owned the flat above subsequently agreed on a premium of £5,500 . If the lease had fallen lower than eighty years, the amount would have become more exhorbitant by at least £850.
Dr Morgan Reed acquired a one bedroom flat in Histon in October 2003. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar homes in Histon with a long lease were in the region of £249,200. The mid-range amount of ground rent was £60 collected yearly. The lease concluded in 2076. Considering the 51 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of professional charges.
Ms Charlotte Baker took over the lease of a first floor apartment in Histon in June 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative homes in Histon with a long lease were in the region of £208,200. The mid-range ground rent payable was £65 collected quarterly. The lease elapsed in 2086. Having 61 years unexpired we approximated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 not including expenses.