The market value of Highams Park leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is less than eighty years
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
| 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 |
Lease extensions in Highams Park can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in this area.
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.
In 2014 Caleb, came very near to the eighty-year threshold with the lease on his leasehold apartment in Highams Park. Having purchased his property two decades ago, the length of the lease was of minimal importance. by good luck, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Caleb extended the lease at the eleventh hour last May. Caleb and the landlord who owned the flat above eventually settled on a premium of £6,000 . If the lease had slipped lower than eighty years, the figure would have increased by at least £1,025.
In 2010 we were phoned by Dr Poppy Gunderson who, having was assigned a lease of a basement flat in Highams Park in October 1997. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparative flats in Highams Park with a long lease were valued around £275,000. The mid-range amount of ground rent was £45 collected annually. The lease ran out on 25 October 2095. Taking into account 69 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.
An example of a Freehold Enfranchisement case 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.