The only way is down when it comes to Highams Park lease terms. Highams Park properties that have a residual term less than than 80 years will drop in value even faster, and the cost of extending your lease will increase.
Leasehold properties in Highams Park with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Highams Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Max was the the leasehold proprietor of a 2 bedroom flat in Highams Park on the market with a lease of fraction over 59 years left. Max on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Max to invoke his statutory right. Max obtained expert advice and secured an acceptable resolution without resorting to tribunal and sell the flat.
Ms J Khan moved into a basement apartment in Highams Park in September 2006. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar homes in Highams Park with an extended lease were valued around £267,600. The average ground rent payable was £65 collected annually. The lease concluded on 26 November 2093. Given that there were 67 years remaining we estimated the premium to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Highams Park property 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 unexpired term was 104 years.