With a residential leasehold premises in Histon, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Anyone in Histon with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has under eighty years left, under the current statute the landlord can calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Histon with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Histon 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 conveyancing solicitor we work with provide it.
Kai owned a high value flat in Histon being sold with a lease of a few days over 61 years remaining. Kai informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Kai to invoke his statutory right. Kai procured expert advice and secured satisfactory resolution informally and readily saleable.
In 2014 we were approached by Mr and Mrs. I Campbell who, having purchased a studio apartment in Histon in January 2008. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative homes in Histon with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 collected per annum. The lease finished on 27 November 2098. Taking into account 73 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.
Last January we were phoned by Dr Luke Carter , who completed a basement apartment in Histon in July 2002. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Histon with a long lease were in the region of £264,000. The mid-range amount of ground rent was £60 collected every twelve months. The lease finished in 2078. Having 53 years remaining we calculated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 not including costs.