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 the lease gets more expensive. Most owners of residential leasehold property in Highams Park enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Highams Park you must see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Highams Park with over 100 years left on the lease are often referred to as ‘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 buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Highams Park can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 dealing with Highams Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Joshua, started to get close to the eighty-year mark with the lease on his leasehold apartment in Highams Park. Having purchased his home 18 years ago, the length of the lease was of little interest. Thankfully, he became aware that he would imminently be paying an inflated amount for a lease extension. Joshua extended the lease at the eleventh hour in May. Joshua and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If he not met the deadline, the amount would have gone up by a minimum £1,150.
In 2013 we were called by Dr N Wilson who, having bought a studio flat in Highams Park in August 2001. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar residencies in Highams Park with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 invoiced yearly. The lease end date was on 21 August 2089. Having 64 years remaining we approximated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal 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 was in relation to 2 flats. The number of years remaining on the existing lease(s) was 104 years.