Handforth leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher amount will be due. Flat owners in Handforth will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain cases you may not qualify. There are also strict timetables and procedures to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Handforth with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Handforth can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor 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 a wealth of experience dealing with Handforth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Edward, came perilously close to the 80-year threshold with the lease on his studio flat in Handforth. In buying his flat 18 years ago, the length of the lease was of minimal relevance. Thankfully, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Edward arranged for a lease extension at the eleventh hour in July. Edward and the landlord who owned the flat above in the end settled on a premium of £6,000 . If the lease had dropped to less than eighty years, the premium would have gone up by a minimum £1,075.
Mr and Mrs. N Green was assigned a lease of a basement apartment in Handforth in March 2007. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparative properties in Handforth with a long lease were in the region of £174,200. The mid-range ground rent payable was £55 collected every twelve months. The lease finished on 22 January 2076. Taking into account 51 years outstanding we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
Last year we were e-mailed by Mrs W Girard , who acquired a one bedroom apartment in Handforth in July 2004. The question was if we could approximate the premium would likely be for a ninety year lease extension. Identical residencies in Handforth with a long lease were valued about £285,000. The mid-range ground rent payable was £45 billed yearly. The lease concluded on 18 September 2096. Taking into account 71 years left we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.