Handforth leases on residential properties are gradually losing value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be due. Leasehold owners in Handforth will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not be entitled. There are prescribed timetables and steps to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Handforth,the lease extension experts that we work with will always be prepared 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.
Austin was the the leasehold proprietor of a 2 bedroom flat in Handforth on the market with a lease of just over 61 years unexpired. Austin on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be due on a lease extension were Austin to exercise his statutory right. Austin obtained expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2011 we were called by Mr and Mrs. W Garcia who, having completed a basement flat in Handforth in July 2001. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable homes in Handforth with 100 year plus lease were valued around £280,000. The average amount of ground rent was £45 collected per annum. The lease concluded in 2095. Taking into account 70 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.
In 2012 we were e-mailed by Dr Sophia Roux who, having acquired a ground floor flat in Handforth in March 2007. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative homes in Handforth with an extended lease were worth £223,400. The mid-range amount of ground rent was £60 billed annually. The lease came to a finish on 15 March 2084. Taking into account 59 years unexpired we calculated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of fees.