There is no doubt about it a leasehold flat or house in Highworth is a wasting asset as a result of the diminishing lease term. If the lease has, over one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. The majority of flat owners in Highworth will meet the qualifying criteria; nevertheless a lawyer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Highworth with over 100 years unexpired on the lease are sometimes 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Highworth can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in lease extensions.
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.
In 2014 Ryan, started to get close to the 80-year threshold with the lease on his two bedroom flat in Highworth. Having bought his flat two decades ago, the unexpired term was of little importance. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Ryan extended the lease just ahead of time in June. Ryan and the landlord subsequently agreed on the final figure of £6,000 . If the lease had descended lower than 80 years, the sum would have gone up by a minimum £975.
Dr Naomi Nelson acquired a newly refurbished flat in Highworth in February 2006. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Similar properties in Highworth with a long lease were worth £275,000. The mid-range ground rent payable was £55 collected every twelve months. The lease concluded in 2102. Taking into account 76 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Mrs Anna Morris purchased a purpose-built apartment in Highworth in June 1997. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar premises in Highworth with an extended lease were worth £176,200. The average ground rent payable was £65 billed monthly. The lease ran out in 2082. Having 56 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including legals.