Heanor leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Heanor enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Heanor you must see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
The lawyers that we work with procure Heanor 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 lawyer we work with provide it.
After protracted correspondence with the landlord of her studio flat in Heanor, Morgan commenced the lease extension process just as her lease was coming close to the crucial 80-year threshold. The transaction completed in January 2015. The landlord’s charges were negotiated to slightly above 650 pounds.
In 2014 we were approached by Dr Rhiannon Young who, having bought a one bedroom flat in Heanor in June 2010. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative properties in Heanor with an extended lease were valued around £242,600. The average amount of ground rent was £45 collected yearly. The lease ended on 14 September 2091. Given that there were 67 years remaining we approximated the premium to the landlord for the lease extension to be between £11,400 and £13,200 plus fees.
Last Autumn we were phoned by Mr and Mrs. R Hall , who completed a first floor flat in Heanor in March 2008. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative premises in Heanor with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 invoiced annually. The lease ended in 2102. Given that there were 78 years outstanding we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.