With a domestic leasehold property in Histon, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Leasehold owners in Histon with a lease drawing near to 81 years left should seriously consider extending it without delay. Once a lease has less than 80 years left, under the relevant legislation the freeholder can calculate and levy a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle 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.
Last October Harvey, started to get close to the eighty-year mark with the lease on his leasehold flat in Histon. In buying his property two decades ago, the unexpired term was of no interest. Luckily, he became aware that he needed to take steps soon on a lease extension. Harvey was able to extend his lease just in the nick of time in January. Harvey and the freeholder eventually settled on an amount of £5,000 . If he had missed the deadline, the figure would have increased by at least £1,150.
In 2014 we were contacted by Ms C François who, having purchased a one bedroom flat in Histon in October 2008. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Histon with an extended lease were valued about £280,000. The average ground rent payable was £55 collected annually. The lease concluded in 2103. Taking into account 78 years unexpired we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.
In 2012 we were e-mailed by Ms Katherine Ricardo who, having completed a newly refurbished flat in Histon in February 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Identical properties in Histon with a long lease were valued about £183,600. The mid-range ground rent payable was £65 collected quarterly. The lease concluded in 2082. Taking into account 57 years remaining we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including legals.