Unfortunately that a Highcliffe residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Highcliffe property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining falls under 80 years, you will end up paying 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 additional value that a lease extension will add the property The majority of leasehold owners in Highcliffe will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| Santander | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Highcliffe,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Highcliffe valuers.
In recent months Riley, came critically near to the eighty-year mark with the lease on his studio apartment in Highcliffe. Having bought his flat two decades ago, the lease term was of no importance. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. Riley arranged for a lease extension at the eleventh hour last January. Riley and the landlord who owned the flat above eventually agreed on an amount of £6,000 . If the lease had descended to less than eighty years, the amount would have gone up by a minimum £925.
Last Christmas we were approach by Mr and Mrs. I Dupont , who bought a one bedroom flat in Highcliffe in January 1999. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable properties in Highcliffe with 100 year plus lease were valued around £181,200. The mid-range amount of ground rent was £65 collected quarterly. The lease ended in 2082. Taking into account 56 years remaining we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of fees.
Ms O Peterson bought a one bedroom flat in Highcliffe in May 2000. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical flats in Highcliffe with a long lease were valued about £242,600. The mid-range amount of ground rent was £45 invoiced annually. The lease finished in 2093. Given that there were 67 years left we approximated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of professional charges.