Highbridge leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Highbridge tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Highbridge you really ought to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Highbridge with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Highbridge leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the landlord of her studio flat in Highbridge, Bethany commenced the lease extension process just as the lease was nearing the critical 80-year deadline. The transaction was finalised in August 2014. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were e-mailed by Ms Millie Jones who, having took over the lease of a recently refurbished apartment in Highbridge in July 2009. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical residencies in Highbridge with a long lease were worth £200,000. The average ground rent payable was £50 invoiced every twelve months. The lease ended in 2103. Given that there were 77 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.
Last month we were called by Mrs T Lefebvre , who purchased a garden flat in Highbridge in November 2009. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar premises in Highbridge with 100 year plus lease were in the region of £260,200. The mid-range amount of ground rent was £65 invoiced annually. The lease ended on 16 April 2092. Considering the 66 years unexpired we estimated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of legals.