Higham Wood leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Higham Wood tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Higham Wood you must see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Higham Wood with in excess of one hundred years unexpired 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| 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. |
The conveyancing solicitors that we work with procure Higham Wood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last October James, started to get near to the 80-year mark with the lease on his purpose- built apartment in Higham Wood. Having purchased his property two decades ago, the unexpired term was of little importance. Thankfully, he noticed he needed to take steps soon on a lease extension. James was able to extend his lease at the eleventh hour in March. James and the landlord who owned the flat above ultimately agreed on a premium of £5,000 . If the lease had dipped below eighty years, the price would have escalated by at least £1,075.
Last Spring we were approach by Dr P Wright , who was assigned a lease of a one bedroom flat in Higham Wood in November 2011. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Comparative flats in Higham Wood with 100 year plus lease were in the region of £245,000. The mid-range amount of ground rent was £50 invoiced annually. The lease finished on 15 October 2093. Taking into account 68 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
In 2010 we were approached by Mrs K Hernández who, having purchased a garden apartment in Higham Wood in May 1998. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparative residencies in Higham Wood with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease finished on 18 May 2104. Considering the 79 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.