It’s a harsh truth that a Histon residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Histon property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining falls under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Histon will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in Histon with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Regardless of whether you are a tenant or a landlord in Histon,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Histon valuers.
Following unsuccessful correspondence with the landlord of her purpose-built apartment in Histon, Hollie initiated the lease extension process just as the lease was coming close to the all-important 80-year mark. The legal work was concluded in January 2005. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were e-mailed by Mr and Mrs. S Taylor , who took over the lease of a purpose-built flat in Histon in September 2007. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparable residencies in Histon with an extended lease were worth £264,000. The mid-range amount of ground rent was £60 billed monthly. The lease lapsed on 9 October 2079. Having 53 years unexpired we approximated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 not including fees.
Last Autumn we were e-mailed by Mr A Rodríguez , who owned a one bedroom flat in Histon in October 1997. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Identical flats in Histon with 100 year plus lease were valued about £225,400. The average ground rent payable was £45 billed annually. The lease finished in 2090. Considering the 64 years left we calculated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 plus fees.