Highnam leases on residential deteriorating in value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Highnam will usually qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some situations you may not be entitled. There are prescribed deadlines and steps to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Highnam with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Highnam,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Highnam valuers.
Thomas was the the leasehold owner of a studio apartment in Highnam on the market with a lease of a few days over 61 years outstanding. Thomas on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Thomas to exercise his statutory right. Thomas obtained expert advice and secured an acceptable resolution informally and readily saleable.
In 2010 we were e-mailed by Mr and Mrs. W Patel who, having was assigned a lease of a purpose-built apartment in Highnam in May 1995. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative properties in Highnam with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 collected annually. The lease terminated on 25 August 2096. Having 71 years left we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.
Last Christmas we were approach by Dr M Gray , who acquired a first floor flat in Highnam in October 1999. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Highnam with 100 year plus lease were valued around £225,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease concluded on 14 April 2085. Having 60 years as a residual term we calculated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus professional charges.