There is no doubt about it a leasehold property in Highcliffe is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of one hundred years remaining then this decrease may be fractional however there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending without delay. Most flat owners in Highcliffe will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Highcliffe with more than one hundred 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
|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.|
|Godiva Mortgages||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.|
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|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.|
The conveyancers that we work with procure Highcliffe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last year Luke, started to get near to the eighty-year mark with the lease on his studio apartment in Highcliffe. Having purchased his home two decades ago, the lease term was of little importance. by good luck, he became aware that he needed to take action soon on Extending the lease. Luke arranged for a lease extension at the eleventh hour last July. Luke and the landlord who owned the flat above ultimately settled on sum of £5,000 . If he had missed the deadline, the figure would have escalated by a minimum £950.
In 2009 we were phoned by Mr and Mrs. T Harris who, having completed a garden flat in Highcliffe in May 2006. The question was if we could approximate the price could be to extend the lease by a further 90 years. Similar flats in Highcliffe with 100 year plus lease were valued about £255,000. The mid-range amount of ground rent was £50 collected yearly. The lease concluded in 2092. Given that there were 71 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
Last year we were e-mailed by Mr Aarav Evans , who was assigned a lease of a ground floor flat in Highcliffe in June 2001. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical homes in Highcliffe with 100 year plus lease were worth £254,200. The mid-range amount of ground rent was £60 billed quarterly. The lease lapsed in 2072. Having 51 years unexpired we approximated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 not including professional charges.