With a domestic leasehold property in Highcliffe, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are fewer than eighty years remaining. Residents in Highcliffe with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once a lease has under 80 years outstanding, under the current statute the freeholder can calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Highcliffe with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Highcliffe can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 procuring Highcliffe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Harry, came critically near to the eighty-year mark with the lease on his purpose- built apartment in Highcliffe. Having purchased his home two decades ago, the length of the lease was of minimal bearing. As luck would have it, he recognised he needed to take steps soon on a lease extension. Harry extended the lease just in the nick of time last July. Harry and the landlord who owned the flat above ultimately settled on the final figure of £5,000 . If the lease had dipped below eighty years, the premium would have escalated by at least £900.
In 2012 we were e-mailed by Ms B Martinez who, having was assigned a lease of a studio apartment in Highcliffe in June 1996. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar flats in Highcliffe with 100 year plus lease were in the region of £237,600. The average ground rent payable was £45 invoiced yearly. The lease came to a finish in 2092. Given that there were 67 years unexpired we approximated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of fees.
In 2009 we were e-mailed by Dr Yasmin Patel who, having bought a basement flat in Highcliffe in July 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparative properties in Highcliffe with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 billed per annum. The lease ran out on 22 November 2103. Having 78 years unexpired we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.