There is no doubt about it a leasehold flat or house in Hanham is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 125 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner as opposed to later. Most flat owners in Hanham will qualify for this right; that being said a lawyer should be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Hanham with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Hanham leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the landlord of her first floor apartment in Hanham, Chelsea started the lease extension process just as the lease was nearing the crucial eighty-year threshold. The transaction was finalised in February 2010. The landlord’s fees were kept to an absolute minimum.
Mr Andrew Wood owned a garden apartment in Hanham in August 2008. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Hanham with an extended lease were in the region of £280,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease lapsed on 21 June 2103. Considering the 77 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus expenses.
Last Winter we were e-mailed by Mr and Mrs. M André , who owned a studio flat in Hanham in June 2004. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Similar residencies in Hanham with an extended lease were in the region of £183,600. The average ground rent payable was £65 collected per annum. The lease finished in 2083. Taking into account 57 years outstanding we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of expenses.