Highcliffe leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Highcliffe will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some situations you may not qualify. There are prescribed deadlines and steps to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Highcliffe with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Highcliffe,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Highcliffe valuers.
After lengthy discussions with the landlord of her first floor flat in Highcliffe, Chloe commenced the lease extension process just as the lease was approaching the crucial 80-year deadline. The lease extension was concluded in October 2008. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were called by Mr S Scott who, having purchased a studio apartment in Highcliffe in January 1996. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Highcliffe with an extended lease were worth £176,200. The average amount of ground rent was £65 billed every twelve months. The lease came to a finish in 2080. Having 56 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 plus fees.
In 2009 we were e-mailed by Mr and Mrs. B Laurent who, having bought a recently refurbished flat in Highcliffe in February 1999. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparative flats in Highcliffe with 100 year plus lease were worth £237,600. The average ground rent payable was £45 collected yearly. The lease concluded on 2 July 2091. Having 67 years unexpired we calculated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus professional charges.