Hightown leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Hightown enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Hightown you would be well advised to see if your lease has between 70 and ninety years remaining. There are good reasons why a Hightown flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Lease extensions in Hightown can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Hightown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful discussions with the freeholder of her first floor flat in Hightown, Madeleine commenced the lease extension process as the 80 year deadline was rapidly advancing. The transaction was concluded in August 2009. The landlord’s charges were kept to an absolute minimum.
In 2012 we were contacted by Ms Catherine Kelly who, having purchased a ground floor apartment in Hightown in February 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparable homes in Hightown with a long lease were valued around £193,400. The mid-range ground rent payable was £65 invoiced quarterly. The lease end date was in 2084. Taking into account 59 years left we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of legals.
Dr Charlie Robinson acquired a ground floor apartment in Hightown in August 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative residencies in Hightown with an extended lease were worth £255,000. The mid-range ground rent payable was £50 billed annually. The lease ended on 24 August 2095. Taking into account 70 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.