It’s a harsh certainty that a Handforth residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Handforth property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Handforth will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold premises in Handforth with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Santander | |
| TSB |
Lease extensions in Handforth can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Handforth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Lucas, started to get close to the 80-year mark with the lease on his garden flat in Handforth. In buying his home 18 years ago, the unexpired term was of little interest. by good luck, he realised he would imminently be paying way over the odds for Extending the lease. Lucas extended the lease just ahead of time last March. Lucas and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If the lease had fallen below 80 years, the amount would have increased by a minimum £900.
In 2010 we were contacted by Mr Ali Taylor who, having completed a one bedroom apartment in Handforth in July 2004. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar properties in Handforth with a long lease were valued around £189,000. The mid-range ground rent payable was £55 billed yearly. The lease ran out on 27 July 2079. Given that there were 53 years left we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.
In 2011 we were phoned by Mr Alexander Clarke who, having took over the lease of a purpose-built flat in Handforth in November 2000. We are asked if we could estimate the price would be to extend the lease by 90 years. Comparative properties in Handforth with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease terminated on 2 July 2099. Considering the 73 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.