The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Heanor may extend the lease for an additional 90 years under legislation. Please give careful consideration before delaying your Heanor lease extension. Postponing that expense now simply increases the amount you will ultimately have to pay to extend the lease.
Leasehold residencies in Heanor with more than 100 years remaining 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Heanor can be a difficult process. We recommend you secure professional help from a lawyer and surveyor 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 in-depth market knowledge procuring Heanor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Aiden, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Heanor. Having purchased his home 18 years ago, the lease term was of little concern. As luck would have it, he noticed he would soon be paying an inflated amount for a lease extension. Aiden arranged for a lease extension at the eleventh hour last July. Aiden and the freeholder subsequently agreed on a premium of £5,500 . If he had missed the deadline, the figure would have gone up by a minimum £900.
Mr and Mrs. V González was assigned a lease of a newly refurbished flat in Heanor in March 2009. The question was if we could estimate the premium could be for a 90 year lease extension. Comparable residencies in Heanor with an extended lease were in the region of £200,800. The mid-range ground rent payable was £65 collected quarterly. The lease expired in 2085. Taking into account 60 years unexpired we estimated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.
In 2013 we were approached by Mr and Mrs. C Rogers who, having completed a one bedroom flat in Heanor in April 2001. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative residencies in Heanor with a long lease were worth £260,000. The mid-range amount of ground rent was £50 billed monthly. The lease end date was on 24 August 2096. Having 71 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.