Highams Park 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 gets more expensive. Legislation has been in place for sometime now allowing qualifying Highams Park residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Highams Park you would be well advised to check if your lease has between 70 and ninety years left. There are compelling reasons why a Highams Park leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is effected without delay
Leasehold properties in Highams Park with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Highams Park,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Highams Park valuers.
Jackson was the the leasehold owner of a 2 bedroom apartment in Highams Park on the market with a lease of fraction over 61 years left. Jackson informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Dr Jayden García owned a ground floor flat in Highams Park in March 1995. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Identical homes in Highams Park with 100 year plus lease were valued about £300,000. The average ground rent payable was £50 billed annually. The lease expired on 3 July 2101. Given that there were 76 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.
An example of a Freehold Enfranchisement decision for a Highams Park premises is 48 Greenleaf Road in December 2009. the lessees sought to exercise their right to purchase the freehold from the landlord by way of collective enfranchisement in accordance with the Leasehold Reform Housing and Urban Development Act 1993.The landlord could not be found.A vesting order was granted from the Bow County Court on 10 September 2007 (Claim No: 8BO04141). The Tribunal held that the premium to be paid was £3,850 This case affected 2 flats. The unexpired residue of the current lease was 104 years.