It’s an underpublicised certainty that a Hightown residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Hightown property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be due. Most leasehold owners in Hightown will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold premises in Hightown with over 100 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Halifax | |
| National Westminster Bank |
Lease extensions in Hightown can be a difficult process. We recommend you procure guidance from a lawyer 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 in-depth market knowledge 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.
18 months ago Aaron, came very close to the 80-year threshold with the lease on his garden flat in Hightown. In buying his home two decades ago, the unexpired term was of minimal interest. Thankfully, he recognised he would imminently be paying an inflated amount for a lease extension. Aaron extended the lease at the eleventh hour in May. Aaron and the freeholder via the management company ultimately agreed on sum of £5,500 . If he had missed the deadline, the amount would have gone up by at least £1,100.
In 2014 we were approached by Mr and Mrs. V Brown who, having took over the lease of a studio apartment in Hightown in May 2007. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Identical homes in Hightown with a long lease were in the region of £245,000. The mid-range ground rent payable was £50 collected per annum. The lease finished in 2094. Considering the 68 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.
Dr Aaron González acquired a garden apartment in Hightown in February 1998. The question was if we could estimate the premium would be for a ninety year lease extension. Comparative flats in Hightown with 100 year plus lease were worth £285,000. The average ground rent payable was £55 invoiced per annum. The lease ran out on 10 July 2105. Having 79 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.