Heath leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Heath will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not qualify. There are also strict timetables and steps to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Heath with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with undertake Heath 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.
Ali was the the leasehold proprietor of a studio apartment in Heath being sold with a lease of a little over 72 years left. Ali on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Ali to exercise his statutory right. Ali procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Last Winter we were phoned by Mrs Y Green , who purchased a ground floor flat in Heath in April 2009. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable residencies in Heath with 100 year plus lease were worth £285,000. The average ground rent payable was £45 invoiced yearly. The lease ended in 2097. Considering the 71 years remaining we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.
Last year we were contacted by Dr G Wilson , who moved into a ground floor flat in Heath in February 1996. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative flats in Heath with 100 year plus lease were in the region of £225,800. The average ground rent payable was £60 invoiced yearly. The lease ended on 3 September 2086. Considering the 60 years as a residual term we approximated the premium to the landlord for the lease extension to be between £23,800 and £27,400 plus costs.