With a domestic leasehold property in Highbridge, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Anyone in Highbridge with a lease drawing near to 81 years left should seriously think of extending it sooner rather than later. Once the lease term has less than eighty years outstanding, under the current Act the freeholder can calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service will provide you better control over the value of your Highbridge leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Toby, started to get near to the eighty-year threshold with the lease on his studio apartment in Highbridge. In buying his flat two decades ago, the length of the lease was of minimal concern. Fortunately, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Toby was able to extend his lease just under the wire in September. Toby and the freeholder via the management company eventually settled on an amount of £5,500 . If the lease had gone lower than 80 years, the amount would have become more exhorbitant by at least £900.
Mr Benjamin Bennett was assigned a lease of a ground floor apartment in Highbridge in June 2008. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Similar flats in Highbridge with 100 year plus lease were worth £265,200. The mid-range amount of ground rent was £65 invoiced per annum. The lease came to a finish in 2091. Taking into account 66 years remaining we approximated the premium to the landlord to extend the lease to be between £15,200 and £17,600 not including professional charges.
In 2014 we were called by Mr S Jackson who, having was assigned a lease of a garden apartment in Highbridge in November 2004. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Similar premises in Highbridge with 100 year plus lease were worth £198,800. The average ground rent payable was £55 invoiced per annum. The lease terminated in 2080. Taking into account 55 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 plus costs.