When it comes to domestic leasehold property in Histon, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are less than 80 years left. Residents in Histon with a lease approaching 81 years remaining should seriously consider extending it without delay. Once the lease term has fewer than eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
|Bank of Scotland||Minimum 70 years from the date of the mortgage.|
|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.|
|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.|
|Halifax||Minimum 70 years from the date of the mortgage.|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
The conveyancers that we work with procure Histon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Dexter was the the leasehold owner of a 2 bedroom flat in Histon being marketed with a lease of a little over sixty years outstanding. Dexter informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Dexter to invoke his statutory right. Dexter procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Dr U Garcia bought a first floor flat in Histon in February 2012. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar properties in Histon with a long lease were in the region of £275,000. The mid-range ground rent payable was £55 billed monthly. The lease lapsed in 2098. Taking into account 76 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
Last Summer we were called by Mr G Gómez , who completed a studio flat in Histon in July 2006. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical flats in Histon with a long lease were worth £176,200. The average amount of ground rent was £65 invoiced per annum. The lease ended on 6 May 2078. Taking into account 56 years unexpired we estimated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of fees.