With a residential leasehold premises in Highcliffe, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years left. Anyone in Highcliffe with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once the lease term has under eighty years left, under the current legislation the freeholder is entitled to calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 lawyer we work with provide it.
Off the back of unsuccessful negotiations with the freeholder of her studio apartment in Highcliffe, Ellie initiated the lease extension process as the eighty year mark was swiftly coming. The legal work completed in February 2012. The landlord’s fees were restricted to less than 700 pounds.
Mrs Kirsty Patel completed a purpose-built flat in Highcliffe in September 2009. The question was if we could estimate the premium would be for a 90 year extension to my lease. Similar flats in Highcliffe with 100 year plus lease were valued around £246,800. The average amount of ground rent was £60 billed annually. The lease terminated on 16 August 2076. Taking into account 50 years left we estimated the premium to the landlord for the lease extension to be within £44,700 and £51,600 not including professional charges.
In 2012 we were called by Mr Jacob Stewart who, having was assigned a lease of a purpose-built flat in Highcliffe in October 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Identical properties in Highcliffe with a long lease were valued about £200,800. The average ground rent payable was £65 invoiced yearly. The lease expired on 24 April 2086. Taking into account 60 years remaining we calculated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.