The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Histon have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your Histon lease extension. Postponing the costs today simply escalates the premium you will ultimately be required to pay to extend the lease.
Leasehold properties in Histon with over one hundred years left on the lease are often referred to as ‘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 to be gained by buying the freehold unless savings on ground rent and estate charges merit 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Histon can be a difficult process. We recommend you secure guidance from a conveyancer and valuer 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 dealing with Histon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the freeholder of her two bedroom flat in Histon, Caitlin initiated the lease extension process just as the lease was nearing the crucial eighty-year threshold. The legal work was finalised in July 2014. The freeholder’s charges were negotiated to a tad over 500 pounds.
Last year we were contacted by Dr Caitlin Mason , who took over the lease of a recently refurbished flat in Histon in July 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparable properties in Histon with 100 year plus lease were worth £183,600. The average ground rent payable was £65 invoiced monthly. The lease came to a finish in 2082. Considering the 57 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of fees.
In 2013 we were contacted by Mr Samuel Mitchell who, having purchased a purpose-built apartment in Histon in March 1998. The question was if we could estimate the premium would be for a 90 year lease extension. Identical properties in Histon with 100 year plus lease were valued about £245,000. The mid-range amount of ground rent was £45 invoiced annually. The lease expiry date was in 2093. Taking into account 68 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.