As the the remaining lease term of a Highams Park residential lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Many flat owners in Highams Park will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Highams Park with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Retaining our service gives you increased control over the value of your Highams Park leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the landlord of her two bedroom apartment in Highams Park, Madeleine commenced the lease extension process as the 80 year threshold was rapidly advancing. The transaction was concluded in July 2005. The landlord’s fees were restricted to approximately 500 pounds.
In 2009 we were e-mailed by Mr and Mrs. V Sharif who, having moved into a newly refurbished flat in Highams Park in September 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Highams Park with a long lease were valued about £191,400. The mid-range ground rent payable was £55 collected yearly. The lease terminated on 25 November 2080. Considering the 54 years remaining we approximated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Highams Park residence 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 related to 2 flats. The number of years remaining on the existing lease(s) was 104 years.