Chances are that where you own a flat in Histon you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers 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 lawyer we work with provide it.
Half a year ago Jamie, came precariously near to the 80-year threshold with the lease on his garden apartment in Histon. Having purchased his home 18 years ago, the length of the lease was of no significance. As luck would have it, he became aware that he would soon be paying way over the odds for Extending the lease. Jamie extended the lease at the eleventh hour last June. Jamie and the freeholder eventually agreed on an amount of £6,000 . If the lease had dropped lower than 80 years, the amount would have become more costly by at least £1,050.
In 2009 we were phoned by Mr and Mrs. W Thomas who, having owned a studio flat in Histon in September 1997. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable flats in Histon with an extended lease were valued around £176,200. The average amount of ground rent was £65 billed quarterly. The lease came to a finish in 2082. Taking into account 56 years remaining we approximated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including expenses.
Last Spring we were contacted by Dr Courtney Norbert , who acquired a basement flat in Histon in April 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Comparative flats in Histon with a long lease were valued about £242,600. The average ground rent payable was £45 invoiced yearly. The lease expired in 2093. Considering the 67 years left we approximated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 plus legals.