It’s an underpublicised certainty that a Howden residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Howden property prices.Once your lease nears 85ish years, you should 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 slips under 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Howden will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold residencies in Howden with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| TSB |
Using our service gives you enhanced control over the value of your Howden leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Omar, came precariously close to the eighty-year mark with the lease on his ground floor apartment in Howden. Having bought his property two decades ago, the length of the lease was of no concern. by good luck, he noticed he would soon be paying way over the odds for a lease extension. Omar arranged for a lease extension just in the nick of time last May. Omar and the landlord ultimately settled on an amount of £5,500 . If he failed to meet the deadline, the figure would have become more costly by at least £1,050.
Mrs Tia Roux acquired a ground floor apartment in Howden in July 1995. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Identical premises in Howden with a long lease were worth £260,000. The average amount of ground rent was £50 invoiced every twelve months. The lease lapsed on 21 September 2098. Having 72 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
In 2009 we were phoned by Ms A Bonnet who, having acquired a basement apartment in Howden in October 2008. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable flats in Howden with 100 year plus lease were in the region of £261,600. The average amount of ground rent was £60 billed yearly. The lease terminated in 2078. Having 52 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 exclusive of legals.