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 your lease gets more expensive. It is the case that most Hanham tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Hanham you should investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Hanham leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is put in place without delay
Leasehold properties in Hanham with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth 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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hanham can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 procuring Hanham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joshua was the the leasehold owner of a 2 bedroom apartment in Hanham being marketed with a lease of a little over 61 years remaining. Joshua informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Joshua to exercise his statutory right. Joshua procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
In 2012 we were approached by Dr J Torres who, having took over the lease of a first floor flat in Hanham in May 2003. The question was if we could approximate the premium would likely be to extend the lease by ninety years. Similar homes in Hanham with an extended lease were in the region of £242,600. The average amount of ground rent was £45 invoiced annually. The lease lapsed on 1 April 2093. Taking into account 67 years unexpired we calculated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus legals.
Last month we were phoned by Dr Olivia Williams , who acquired a studio flat in Hanham in May 1998. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable flats in Hanham with a long lease were worth £280,000. The average ground rent payable was £55 invoiced quarterly. The lease expired in 2104. Considering the 78 years outstanding we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.