Highcliffe leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Highcliffe will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and steps to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Highcliffe with more than 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Highcliffe,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Highcliffe valuers.
Dexter was the the leasehold proprietor of a studio apartment in Highcliffe being marketed with a lease of fraction over fifty eight years unexpired. Dexter on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Dexter to invoke his statutory right. Dexter procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2012 we were called by Mr and Mrs. U Carter who, having owned a ground floor flat in Highcliffe in July 2004. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable residencies in Highcliffe with 100 year plus lease were worth £198,400. The average ground rent payable was £65 invoiced monthly. The lease finished on 20 April 2085. Taking into account 59 years remaining we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 not including expenses.
Last Summer we were phoned by Mr Jamie Alexander , who was assigned a lease of a purpose-built flat in Highcliffe in October 1998. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparative homes in Highcliffe with a long lease were worth £255,000. The mid-range ground rent payable was £50 billed per annum. The lease concluded on 2 June 2096. Considering the 70 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.