The only way is down when it comes to Handforth lease terms. Handforth flats that have a lease term lower than 80 years will de-escalate in value at a rapid rate, and the cost of extending your lease will increase.
Leasehold properties in Handforth with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Santander | |
| Royal Bank of Scotland |
The lawyers that we work with handle Handforth 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 lawyer we work with provide it.
Last October Matthew, came very near to the 80-year mark with the lease on his leasehold flat in Handforth. In buying his flat 18 years previously, the unexpired term was of no bearing. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Matthew arranged for a lease extension just ahead of time last August. Matthew and the freeholder via the management company subsequently settled on the final figure of £5,500 . If the lease had fallen to less than 80 years, the figure would have increased by a minimum £900.
Dr Harvey Leroy acquired a garden flat in Handforth in April 2012. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical properties in Handforth with a long lease were valued around £290,000. The mid-range amount of ground rent was £45 billed annually. The lease ended on 9 April 2098. Having 72 years as a residual term we approximated the premium to the landlord for the lease extension to be within £11,400 and £13,200 not including professional charges.
Mr Alfie Lewis owned a one bedroom flat in Handforth in March 2002. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Comparable properties in Handforth with 100 year plus lease were in the region of £233,200. The mid-range amount of ground rent was £60 collected quarterly. The lease terminated on 19 April 2087. Taking into account 61 years left we approximated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 not including legals.