Unfortunately that a Highworth residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Highworth property market.Where your lease has approximately ninety years left, you need to start thinking about 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 falls under 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Highworth will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold premises in Highworth with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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 estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Santander | |
| TSB | |
| The Mortgage Works |
Lease extensions in Highworth can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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 Highworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alfie was the the leasehold owner of a conversion flat in Highworth on the market with a lease of just over 59 years remaining. Alfie on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be due on a lease extension were Alfie to invoke his statutory right. Alfie procured expert legal guidance and secured satisfactory deal informally and sell the flat.
Dr F Davis purchased a garden apartment in Highworth in February 2000. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Comparative homes in Highworth with an extended lease were worth £256,600. The mid-range amount of ground rent was £60 invoiced annually. The lease ran out in 2078. Having 52 years unexpired we calculated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 not including expenses.
Mr and Mrs. Y Roberts bought a purpose-built flat in Highworth in June 2001. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Highworth with a long lease were worth £218,000. The average ground rent payable was £45 collected annually. The lease came to a finish on 17 April 2089. Given that there were 63 years remaining we estimated the premium to the landlord to extend the lease to be within £17,100 and £19,800 plus fees.