Handforth leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Handforth enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Handforth you must see if your lease has between 70 and ninety years left. There are compelling reasons why a Handforth leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Handforth,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Handforth valuers.
Hunter owned a high value apartment in Handforth being sold with a lease of a few days over 59 years outstanding. Hunter informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Hunter to invoke his statutory right. Hunter procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2012 we were e-mailed by Ms F Petit who, having bought a one bedroom apartment in Handforth in May 2002. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Similar residencies in Handforth with a long lease were worth £200,000. The mid-range amount of ground rent was £50 billed quarterly. The lease finished on 11 June 2103. Given that there were 77 years unexpired we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
Dr Sarah Clarke acquired a purpose-built apartment in Handforth in April 1995. The dilemma was if we could estimate the price could be for a 90 year lease extension. Identical flats in Handforth with an extended lease were in the region of £265,200. The mid-range amount of ground rent was £65 collected annually. The lease ended in 2092. Considering the 66 years left we calculated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of fees.