It’s a harsh certainty that a Highcliffe residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Highcliffe property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Highcliffe will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Using our service will provide you enhanced control over the value of your Highcliffe leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the freeholder of her one bedroom apartment in Highcliffe, Shannon initiated the lease extension process just as the lease was nearing the all-important 80-year mark. The lease extension was concluded in June 2011. The freeholder’s costs were negotiated to below four hundred pounds.
In 2011 we were called by Mrs U Davis who, having bought a studio apartment in Highcliffe in September 2012. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Similar residencies in Highcliffe with 100 year plus lease were valued around £186,000. The mid-range ground rent payable was £65 invoiced per annum. The lease terminated on 22 July 2084. Given that there were 58 years left we approximated the premium to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of fees.
Dr T Campbell bought a studio apartment in Highcliffe in March 2006. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Comparative flats in Highcliffe with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 invoiced yearly. The lease end date was in 2095. Considering the 69 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.