Highcliffe leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay half 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 mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Highcliffe with more than one hundred years remaining 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Highcliffe,the lease extension solicitors that we work with will always be willing 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.
Last year Isaac, came critically near to the 80-year mark with the lease on his garden apartment in Highcliffe. In buying his home two decades ago, the lease term was of no relevance. Fortunately, he recognised he needed to take action soon on a lease extension. Isaac arranged for a lease extension at the eleventh hour in May. Isaac and the landlord who owned the flat above ultimately settled on an amount of £6,000 . If he not met the deadline, the sum would have gone up by at least £1,075.
In 2009 we were called by Mr and Mrs. R Mason who, having was assigned a lease of a ground floor flat in Highcliffe in January 2008. The question was if we could approximate the premium would be for a 90 year extension to my lease. Similar residencies in Highcliffe with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 billed monthly. The lease finished on 21 April 2095. Given that there were 69 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
Last Christmas we were approach by Dr Toby Walker , who owned a studio flat in Highcliffe in March 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Highcliffe with an extended lease were worth £285,000. The average amount of ground rent was £55 invoiced yearly. The lease expired on 19 January 2105. Given that there were 79 years unexpired we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.