With a domestic leasehold premises in Histon, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than eighty years left. Leasehold owners in Histon with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has below eighty years remaining, under the current legislation the landlord is entitled to calculate and levy a larger amount, based on a technical computation, known as “marriage value” which is due.
Leasehold properties in Histon with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Histon,the lease extension lawyers 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.
Last Christmas Lewis, came precariously near to the 80-year mark with the lease on his purpose- built flat in Histon. In buying his property two decades ago, the length of the lease was of minimal relevance. Thankfully, he noticed he would imminently be paying way over the odds for a lease extension. Lewis arranged for a lease extension at the eleventh hour in May. Lewis and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If he not met the deadline, the sum would have escalated by at least £950.
In 2011 we were called by Mr and Mrs. D Michel who, having took over the lease of a studio flat in Histon in June 2005. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparable premises in Histon with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 billed yearly. The lease expired on 27 July 2092. Considering the 66 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.
In 2009 we were phoned by Dr K Lee who, having owned a ground floor flat in Histon in May 1995. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar homes in Histon with an extended lease were in the region of £275,000. The average ground rent payable was £55 collected quarterly. The lease expired on 21 July 2102. Taking into account 76 years remaining we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.