When it comes to long leasehold property in Long Hanborough, you are actually purchasing a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Residents in Long Hanborough with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has below eighty years left, under the current legislation the landlord can calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 undertake Long Hanborough 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 conveyancer we work with provide it.
14 months ago Callum, started to get close to the eighty-year mark with the lease on his purpose- built apartment in Long Hanborough. Having bought his flat 18 years previously, the length of the lease was of no relevance. Thankfully, he realised he needed to take steps soon on Extending the lease. Callum arranged for a lease extension just under the wire last March. Callum and the freeholder via the managing agents eventually settled on an amount of £6,000 . If the lease had slid to less than eighty years, the amount would have increased by at least £1,075.
In 2014 we were phoned by Mr Henry Wilson who, having was assigned a lease of a studio apartment in Long Hanborough in July 1996. The question was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar premises in Long Hanborough with an extended lease were valued about £210,000. The average amount of ground rent was £50 invoiced annually. The lease elapsed in 2105. Taking into account 79 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.
Mr and Mrs. H Rivera took over the lease of a first floor flat in Long Hanborough in June 2009. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical homes in Long Hanborough with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease finished in 2095. Having 69 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.