Highcliffe leases on domestic deteriorating in value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be payable. Leasehold owners in Highcliffe will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and steps to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service will provide you better control over the value of your Highcliffe leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Jackson, came critically near to the eighty-year threshold with the lease on his basement apartment in Highcliffe. Having bought his home two decades ago, the lease term was of no relevance. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Jackson extended the lease at the eleventh hour in January. Jackson and the freeholder subsequently settled on the final figure of £6,000 . If the lease had slid below eighty years, the figure would have gone up by a minimum £900.
Mr and Mrs. V Alexander bought a purpose-built flat in Highcliffe in March 2000. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Identical premises in Highcliffe with 100 year plus lease were valued about £254,200. The average amount of ground rent was £60 collected quarterly. The lease end date was on 10 March 2076. Taking into account 51 years outstanding we estimated the premium to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of expenses.
In 2011 we were contacted by Mr Stanley Gunderson who, having acquired a one bedroom apartment in Highcliffe in January 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Highcliffe with an extended lease were worth £210,600. The mid-range amount of ground rent was £45 billed quarterly. The lease lapsed in 2087. Considering the 62 years outstanding we estimated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.