Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Howden. Inevitably, the length of lease left shortens as time goes by. This is often overlooked and only raises itself as an issue when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Howden have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. You should give careful attention before delaying your Howden lease extension. Holding off that expense now simply increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Howden with over one hundred years outstanding 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
The lawyers that we work with handle Howden 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 conveyancing solicitor we work with provide it.
Reuben was the the leasehold proprietor of a 2 bedroom apartment in Howden being marketed with a lease of fraction over fifty eight years outstanding. Reuben on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Reuben to invoke his statutory right. Reuben procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2012 we were phoned by Mr and Mrs. P Morgan who, having owned a garden apartment in Howden in March 1999. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar flats in Howden with an extended lease were worth £220,400. The mid-range ground rent payable was £45 collected quarterly. The lease elapsed on 16 September 2089. Having 64 years left we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of costs.
Mr Daniel Mason completed a first floor apartment in Howden in November 2012. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar flats in Howden with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 collected quarterly. The lease ended on 26 July 2100. Given that there were 75 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.