When it comes to residential leasehold premises in Higham Ferrers, you are actually buying a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are less than 80 years left. Residents in Higham Ferrers with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When a lease has fewer than 80 years left, under the current legislation the landlord is entitled to calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Higham Ferrers with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Higham Ferrers leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Teddy, came dangerously near to the eighty-year mark with the lease on his first floor flat in Higham Ferrers. Having purchased his property two decades ago, the unexpired term was of little bearing. Luckily, he became aware that he would soon be paying an escalated premium for Extending the lease. Teddy was able to extend his lease at the eleventh hour last September. Teddy and the freeholder eventually agreed on the final figure of £6,000 . If he failed to meet the deadline, the sum would have gone up by a minimum £975.
Last Autumn we were called by Mr W André , who owned a purpose-built apartment in Higham Ferrers in October 1998. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar properties in Higham Ferrers with a long lease were in the region of £270,000. The average amount of ground rent was £55 billed every twelve months. The lease expired on 18 April 2102. Having 76 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
In 2011 we were phoned by Ms K Simon who, having completed a one bedroom apartment in Higham Ferrers in February 2004. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Identical flats in Higham Ferrers with an extended lease were valued around £176,200. The mid-range ground rent payable was £65 collected monthly. The lease terminated on 23 June 2082. Taking into account 56 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of legals.