Hanham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Hanham tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Hanham you really ought to investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Hanham flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Hanham with in excess of one hundred years unexpired on the lease are sometimes 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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Irrespective of whether you are a tenant or a landlord in Hanham,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 experience and the close ties they enjoy with Hanham valuers.
Samuel was the the leasehold owner of a 2 bedroom flat in Hanham on the market with a lease of just over 59 years remaining. Samuel informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be due on a lease extension were Samuel to exercise his statutory right. Samuel procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Dr Tommy Cox took over the lease of a purpose-built apartment in Hanham in February 2003. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Similar homes in Hanham with a long lease were valued around £285,000. The mid-range ground rent payable was £55 collected annually. The lease came to a finish in 2105. Taking into account 79 years remaining we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including legals.
Dr A Vincent acquired a garden apartment in Hanham in October 1996. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Identical flats in Hanham with an extended lease were valued around £193,400. The average amount of ground rent was £65 billed quarterly. The lease end date was on 24 September 2085. Taking into account 59 years left we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus professional charges.