Highcliffe leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Highcliffe enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Highcliffe you would be well advised to check if your lease has between 70 and 90 years left. There are compelling reasons why a Highcliffe leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay
Leasehold residencies in Highcliffe with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Halifax | |
| Skipton Building Society | |
| The Mortgage Works |
The lawyers that we work with handle Highcliffe 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.
Cameron was the the leasehold proprietor of a 2 bedroom apartment in Highcliffe being sold with a lease of just over sixty years remaining. Cameron informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Cameron to exercise his statutory right. Cameron procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
In 2011 we were phoned by Mr and Mrs. K Fournier who, having bought a one bedroom flat in Highcliffe in August 2012. The question was if we could estimate the price would likely be to extend the lease by 90 years. Similar properties in Highcliffe with 100 year plus lease were valued about £242,600. The average ground rent payable was £45 billed quarterly. The lease lapsed in 2093. Having 67 years left we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of legals.
Last Winter we were contacted by Dr A Lambert , who acquired a first floor apartment in Highcliffe in March 2009. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparative properties in Highcliffe with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 billed monthly. The lease end date was in 2104. Taking into account 78 years as a residual term we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.