With a domestic leasehold property in Highbridge, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years remaining. Residents in Highbridge with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has below 80 years left, under the current statute the freeholder can calculate and charge a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Highbridge with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service gives you better control over the value of your Highbridge leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Jacob, came dangerously close to the eighty-year threshold with the lease on his purpose- built apartment in Highbridge. Having bought his property two decades ago, the lease term was of minimal interest. Thankfully, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Jacob arranged for a lease extension at the eleventh hour in January. Jacob and the landlord in the end agreed on sum of £6,000 . If the lease had dipped below eighty years, the sum would have gone up by a minimum £925.
Ms P Hernández completed a purpose-built flat in Highbridge in October 1998. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical homes in Highbridge with an extended lease were in the region of £252,800. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish on 22 October 2091. Having 65 years outstanding we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of fees.
In 2009 we were approached by Dr D Michel who, having was assigned a lease of a purpose-built apartment in Highbridge in July 2011. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar flats in Highbridge with an extended lease were valued about £191,400. The mid-range amount of ground rent was £55 invoiced quarterly. The lease expired on 12 April 2080. Considering the 54 years remaining we estimated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of expenses.