With a long leasehold property in Hanham, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are less than eighty years left. Leasehold owners in Hanham with a lease approaching 81 years unexpired should seriously think of extending it sooner as opposed to later. When the lease term has under 80 years remaining, under the current statute the freeholder can calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Hanham with more than 100 years unexpired 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Hanham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hanham valuers.
Following protracted correspondence with the freeholder of her one bedroom flat in Hanham, Jade initiated the lease extension process as the 80 year threshold was rapidly approaching. The legal work completed in October 2005. The landlord’s charges were negotiated to under 700 pounds.
In 2011 we were contacted by Dr Henry Johnson who, having took over the lease of a first floor apartment in Hanham in May 1996. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Hanham with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 collected yearly. The lease expired in 2097. Considering the 72 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
In 2010 we were e-mailed by Mrs Poppy Wilson who, having completed a garden flat in Hanham in March 2007. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar premises in Hanham with an extended lease were valued about £256,600. The average amount of ground rent was £60 billed monthly. The lease ran out on 21 October 2077. Considering the 52 years remaining we approximated the compensation to the landlord to extend the lease to be between £41,800 and £48,400 not including fees.