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Main reasons to commence your Hanham lease extension

Top reasons for lease extension now:

A Hanham leasehold property depreciates with the years remaining on the lease.

As the length of the unexpired term of a Hanham domestic lease decreases so does its value and therefore the value of your property. If the residual term has, in excess of 100 years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner than later. Most flat owners in Hanham will meet the qualifying criteria; however a lawyer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.

Hanham property with a lease extension is almost the same value as a freehold

Leasehold premises in Hanham with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies will not grant a mortgage on a short lease

Most banks have tightened lending criteria in recent years and borrowers are encountering difficulties in arranging funding or re-mortgage against flats with shorter lease terms, particularly below 75 years as they are considered to be insufficient for lending purposes.

Lender Requirement
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.
Halifax 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.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

What makes us experts in Hanham lease extensions?

The lawyers that we work with procure Hanham 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.

Hanham Lease Extension Example Cases:

Niamh, Hanham, Gloucestershire,

Trailing lengthy negotiations with the landlord of her first floor apartment in Hanham, Niamh commenced the lease extension process as the 80 year deadline was quickly nearing. The transaction completed in March 2005. The landlord’s charges were kept to an absolute minimum.

Hanham case:

Mr and Mrs. D Wilson completed a one bedroom flat in Hanham in June 2011. We are asked if we could approximate the price could be for a ninety year extension to my lease. Identical properties in Hanham with an extended lease were valued around £225,400. The mid-range ground rent payable was £45 collected yearly. The lease ended on 24 August 2085. Taking into account 64 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of professional charges.

Hanham case:

In 2014 we were e-mailed by Mr Kian Peterson who, having took over the lease of a garden flat in Hanham in March 2005. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparable premises in Hanham with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected monthly. The lease came to a finish in 2096. Given that there were 75 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.