The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Highbridge may extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Please think carefully before delaying your Highbridge lease extension. Postponing that expense today simply escalates the amount you will eventually be required to pay to extend the lease.
It is generally considered 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 ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 undertake Highbridge 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.
Last year Archie, started to get close to the 80-year threshold with the lease on his studio apartment in Highbridge. Having bought his property 19 years previously, the lease term was of little concern. Thankfully, he noticed he needed to take steps soon on Extending the lease. Archie arranged for a lease extension at the eleventh hour in May. Archie and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If the lease had slipped to less than eighty years, the figure would have escalated by a minimum £1,000.
Mr and Mrs. D Clark purchased a one bedroom apartment in Highbridge in February 2003. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparable premises in Highbridge with 100 year plus lease were valued about £205,000. The average ground rent payable was £50 invoiced monthly. The lease ended on 22 November 2103. Having 78 years outstanding we approximated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 plus fees.
Mr and Mrs. H Reed purchased a garden flat in Highbridge in June 2002. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Highbridge with an extended lease were valued around £270,000. The average amount of ground rent was £65 invoiced monthly. The lease expiry date was on 27 September 2093. Having 68 years as a residual term we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.