With a long leasehold premises in Highcliffe, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than eighty years remaining. Residents in Highcliffe with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has below 80 years remaining, under the relevant Act the landlord is entitled to calculate and demand a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Highcliffe with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Nationwide Building Society | |
| Santander | |
| Skipton Building Society | |
| Virgin |
The conveyancers 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 conveyancing solicitor we work with provide it.
Last Winter Milo, came perilously near to the eighty-year threshold with the lease on his purpose- built apartment in Highcliffe. Having purchased his property two decades ago, the length of the lease was of little concern. Thankfully, he recognised he would imminently be paying an inflated amount for a lease extension. Milo was able to extend his lease at the eleventh hour last July. Milo and the landlord subsequently settled on sum of £5,000 . If he had missed the deadline, the amount would have increased by at least £925.
Last Spring we were contacted by Mrs Gemma Clark , who purchased a newly refurbished flat in Highcliffe in May 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparative residencies in Highcliffe with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 collected every twelve months. The lease finished in 2101. Taking into account 75 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.
In 2010 we were e-mailed by Dr George Mercier who, having took over the lease of a purpose-built flat in Highcliffe in October 2002. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative premises in Highcliffe with a long lease were worth £173,800. The average amount of ground rent was £65 collected monthly. The lease concluded in 2081. Given that there were 55 years unexpired we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of expenses.