Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Histon. Clearly, the term of lease left reduces as time goes by. This is often overlooked and only becomes a problem when the property needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Histon have the right to extend the lease for a further 90 years in accordance with statute. Please give due deliberation before delaying your Histon lease extension. Putting off the cost now only increases the price you will ultimately incur to extend your lease
Leasehold premises in Histon with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Histon can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 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.
Two years ago Harvey, came seriously close to the eighty-year threshold with the lease on his studio apartment in Histon. Having bought his property two decades ago, the unexpired term was of little significance. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Harvey extended the lease at the eleventh hour last January. Harvey and the freeholder in the end agreed on sum of £6,000 . If he had missed the deadline, the amount would have escalated by at least £875.
In 2009 we were contacted by Mr Daniel García who, having was assigned a lease of a purpose-built apartment in Histon in May 2008. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative flats in Histon with an extended lease were valued around £275,000. The average ground rent payable was £55 billed annually. The lease terminated on 13 January 2102. Considering the 76 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
In 2010 we were called by Ms M Robinson who, having purchased a purpose-built flat in Histon in May 2004. The dilemma was if we could approximate the price would be to extend the lease by ninety years. Comparative premises in Histon with an extended lease were valued around £176,200. The average ground rent payable was £65 collected yearly. The lease came to a finish in 2082. Given that there were 56 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 plus costs.