Unfortunately that a Higham Wood residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Higham Wood property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining dips below 80 years, you will end up paying half 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 Wood will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not qualify. 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 conveyancer for the duration of the process.
Leasehold properties in Higham Wood with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Higham Wood can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in this area.
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 procuring Higham Wood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Tommy was the the leasehold owner of a studio apartment in Higham Wood on the market with a lease of just over 61 years remaining. Tommy informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Tommy to invoke his statutory right. Tommy obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Ms Lily Williams bought a newly refurbished apartment in Higham Wood in January 2012. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Higham Wood with 100 year plus lease were valued around £270,000. The mid-range ground rent payable was £55 collected yearly. The lease finished in 2100. Given that there were 75 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.
In 2013 we were contacted by Mr Sebastian Pérez who, having purchased a newly refurbished flat in Higham Wood in August 2002. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparative flats in Higham Wood with an extended lease were in the region of £168,800. The average amount of ground rent was £60 collected monthly. The lease ran out on 25 November 2080. Considering the 55 years unexpired we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including fees.