Highcliffe leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Highcliffe will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and formalities to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors 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.
Two years ago Michael, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Highcliffe. Having bought his property 18 years previously, the length of the lease was of no significance. Thankfully, he realised he needed to take action soon on a lease extension. Michael was able to extend his lease just in the nick of time in July. Michael and the freeholder eventually agreed on an amount of £6,000 . If the lease had dropped lower than eighty years, the premium would have become more costly by at least £1,000.
Last Autumn we were phoned by Mr and Mrs. H Morris , who bought a garden apartment in Highcliffe in August 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparable properties in Highcliffe with 100 year plus lease were in the region of £246,800. The average ground rent payable was £60 collected annually. The lease concluded on 27 April 2074. Taking into account 50 years unexpired we estimated the premium to the landlord to extend the lease to be within £44,700 and £51,600 exclusive of fees.
In 2011 we were approached by Dr Luca Morel who, having was assigned a lease of a studio flat in Highcliffe in October 1998. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparative premises in Highcliffe with an extended lease were in the region of £203,200. The mid-range ground rent payable was £65 invoiced annually. The lease lapsed in 2085. Given that there were 61 years remaining we calculated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including expenses.