The closer a residential lease in Highcliffe gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond one hundred years to run then this decrease may be fractional that being said there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. Most flat owners in Highcliffe will qualify for this right; however a conveyancer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Highcliffe with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Retaining our service will provide you better control over the value of your Highcliffe leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the landlord of her basement apartment in Highcliffe, Georgia initiated the lease extension process just as the lease was coming close to the all-important 80-year threshold. The legal work completed in September 2005. The landlord’s costs were kept to an absolute minimum.
In 2014 we were contacted by Mrs Yasmin Rivera who, having completed a basement flat in Highcliffe in January 2001. The question was if we could approximate the price could be for a ninety year extension to my lease. Similar homes in Highcliffe with an extended lease were valued about £193,400. The average ground rent payable was £65 billed monthly. The lease finished in 2084. Taking into account 59 years unexpired we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 plus costs.
In 2010 we were called by Dr E Jones who, having was assigned a lease of a basement flat in Highcliffe in July 1995. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative properties in Highcliffe with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease elapsed in 2095. Considering the 70 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.