Handforth leases on residential properties are gradually losing 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. It is the case that most Handforth tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Handforth you must see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Skipton Building Society |
Lease extensions in Handforth can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in this area.
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 a wealth of experience 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 William, started to get close to the eighty-year threshold with the lease on his ground floor flat in Handforth. Having purchased his property 18 years previously, the length of the lease was of no importance. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for a lease extension. William extended the lease just in the nick of time in January. William and the landlord in the end settled on the final figure of £6,000 . If the lease had slid lower than eighty years, the price would have increased by a minimum £1,025.
Last November we were e-mailed by Ms Chantelle Ricardo , who purchased a one bedroom apartment in Handforth in October 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative premises in Handforth with an extended lease were worth £257,800. The average ground rent payable was £65 collected per annum. The lease concluded on 14 March 2091. Given that there were 65 years left we calculated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus costs.
Dr Mason Girard took over the lease of a one bedroom apartment in Handforth in October 1997. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparable properties in Handforth with 100 year plus lease were in the region of £196,400. The mid-range amount of ground rent was £55 billed annually. The lease expired in 2080. Considering the 54 years remaining we approximated the premium to the landlord for the lease extension to be between £34,200 and £39,600 plus costs.