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 your lease gets more expensive. It is the case that most Highbridge tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Highbridge you really ought to check if your lease has between 70 and ninety years remaining. There are good reasons why a Highbridge leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| National Westminster Bank | |
| The Mortgage Works | |
| Virgin |
Lease extensions in Highbridge can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Highbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Evan, started to get near to the eighty-year threshold with the lease on his basement flat in Highbridge. In buying his property 19 years ago, the length of the lease was of little significance. Fortunately, he recognised he needed to take steps soon on Extending the lease. Evan arranged for a lease extension at the eleventh hour last August. Evan and the landlord subsequently settled on a premium of £5,000 . If the lease had descended to less than eighty years, the price would have gone up by a minimum £975.
Last Spring we were contacted by Dr Cameron Ramírez , who owned a recently refurbished apartment in Highbridge in July 1999. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable premises in Highbridge with 100 year plus lease were in the region of £216,000. The average ground rent payable was £60 collected every twelve months. The lease ended on 15 June 2084. Given that there were 58 years left we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.
Dr Tia Alexander bought a basement apartment in Highbridge in January 2007. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable flats in Highbridge with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed yearly. The lease ran out on 21 November 2104. Having 78 years remaining we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.