Hightown leases on residential deteriorating in value. if your lease has in the region of 90 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 your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Hightown will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some cases you may not qualify. There are prescribed timetables and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Hightown with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| 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. |
Lease extensions in Hightown can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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 procuring 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 lengthy discussions with the landlord of her leasehold apartment in Hightown, Ellie initiated the lease extension process just as her lease was approaching the all-important 80-year mark. The lease extension completed in October 2015. The landlord’s costs were kept to an absolute minimum.
Mrs J Cox bought a purpose-built apartment in Hightown in November 2004. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Similar properties in Hightown with an extended lease were in the region of £270,000. The average amount of ground rent was £55 billed monthly. The lease expired in 2101. Considering the 75 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Dr L Rivera took over the lease of a purpose-built apartment in Hightown in April 2002. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Comparative flats in Hightown with 100 year plus lease were worth £173,800. The average ground rent payable was £60 billed quarterly. The lease ran out on 1 March 2081. Taking into account 55 years left we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of legals.