Unfortunately that a Higham Ferrers residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Higham Ferrers property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term falls below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Higham Ferrers will be able to extend under the legislation; however a conveyancer will be able to confirm whether 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 is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Higham Ferrers,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Higham Ferrers valuers.
Ibrahim owned a studio flat in Higham Ferrers being marketed with a lease of a few days over sixty years unexpired. Ibrahim informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2014 we were e-mailed by Ms Nicole Bonnet who, having owned a basement apartment in Higham Ferrers in October 1995. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Comparable homes in Higham Ferrers with 100 year plus lease were valued around £246,800. The average amount of ground rent was £60 billed annually. The lease terminated on 21 July 2075. Given that there were 50 years outstanding we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of expenses.
Last July we were called by Ms Erin Moore , who owned a garden apartment in Higham Ferrers in June 1997. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative homes in Higham Ferrers with an extended lease were in the region of £203,200. The average amount of ground rent was £65 collected every twelve months. The lease ended in 2086. Considering the 61 years remaining we calculated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of costs.