Histon leases on domestic deteriorating in value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Histon will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Histon with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| 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. |
Lease extensions in Histon can be a difficult process. We recommend you secure professional help from a conveyancer 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 in-depth market knowledge dealing with Histon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the freeholder of her garden apartment in Histon, Rhiannon commenced the lease extension process as the 80 year threshold was quickly coming. The legal work completed in October 2006. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were e-mailed by Mr and Mrs. T Rogers , who completed a first floor flat in Histon in September 2004. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical premises in Histon with an extended lease were in the region of £198,400. The mid-range ground rent payable was £65 billed per annum. The lease came to a finish on 13 November 2085. Having 59 years remaining we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus fees.
Last November we were e-mailed by Mr and Mrs. K Laurent , who took over the lease of a one bedroom flat in Histon in January 2012. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparable residencies in Histon with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 billed annually. The lease elapsed in 2096. Considering the 70 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.