Highbridge leases on domestic deteriorating in value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Highbridge will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Highbridge,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Highbridge valuers.
Ben was the the leasehold proprietor of a studio apartment in Highbridge being sold with a lease of fraction over fifty eight years outstanding. Ben on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Ben to exercise his statutory right. Ben obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
Mr and Mrs. S Mercier acquired a ground floor apartment in Highbridge in April 2003. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparable flats in Highbridge with an extended lease were in the region of £184,000. The mid-range amount of ground rent was £55 collected yearly. The lease terminated on 15 April 2079. Having 53 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.
Mr M Alexander bought a garden apartment in Highbridge in July 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Comparative properties in Highbridge with 100 year plus lease were valued around £290,000. The average ground rent payable was £45 collected quarterly. The lease terminated on 1 January 2099. Considering the 73 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.