It’s a harsh certainty that a Hanham 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 early years due to the deflation being disguised by increases in the Hanham property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining slips under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Hanham will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in Hanham with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Lease extensions in Hanham can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor 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 dealing with Hanham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Lucas, came dangerously close to the 80-year threshold with the lease on his basement apartment in Hanham. Having purchased his property 19 years ago, the length of the lease was of minimal relevance. As luck would have it, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Lucas arranged for a lease extension just under the wire last June. Lucas and the freeholder via the management company in the end agreed on sum of £6,000 . If the lease had fallen lower than eighty years, the premium would have increased by at least £1,075.
In 2013 we were approached by Mr B Lambert who, having bought a ground floor flat in Hanham in January 1996. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar premises in Hanham with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 collected per annum. The lease lapsed in 2100. Having 75 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Last Summer we were approach by Mrs Lydia Stewart , who took over the lease of a ground floor apartment in Hanham in January 2005. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Hanham with an extended lease were in the region of £166,400. The mid-range amount of ground rent was £60 invoiced annually. The lease elapsed on 7 November 2079. Taking into account 54 years remaining we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of legals.