Unfortunately that a Higham Wood residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Higham Wood property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term drops below 80 years, you will then be required to pay 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 extra value that a lease extension will add the property The majority of flat owners in Higham Wood will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold properties in Higham Wood with more than 100 years unexpired on the lease are sometimes referred to as ‘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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Higham Wood leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Harvey was the the leasehold proprietor of a conversion apartment in Higham Wood being sold with a lease of just over 59 years remaining. Harvey informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harvey to exercise his statutory right. Harvey procured expert advice and secured an acceptable resolution without resorting to tribunal and sell the flat.
Last Winter we were called by Dr Luke Mitchell , who was assigned a lease of a basement apartment in Higham Wood in November 1998. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparative flats in Higham Wood with an extended lease were worth £218,000. The mid-range amount of ground rent was £45 billed quarterly. The lease ran out in 2088. Given that there were 63 years left we approximated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 not including costs.
Last month we were e-mailed by Mr Kai Dupont , who moved into a ground floor apartment in Higham Wood in January 2005. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Similar homes in Higham Wood with 100 year plus lease were valued around £265,000. The mid-range amount of ground rent was £55 billed annually. The lease came to a finish on 19 June 2099. Taking into account 74 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.