Why you should commence your Heath lease extension
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Why you should commence your Heath lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/heath">Heath</a> leasehold property depreciates with the years remaining on the lease.
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<p> It’s an underpublicised certainty that a Heath residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Heath property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Heath will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
<h4>An extended lease has roughly the same value as a freehold</h4>
<p> It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
<h4>Lending institutions may decide not to grant a mortgage with a short lease</h4> Most high street banks are tightening their criteria and a meaningful number now want flats to have at least 60 if not 70 years left at the end of the mortgage. Given that many flats in Heath were built in the fifties, sixties and seventies as a result many now require lease extensions if they if they are to be mortgageable.
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<th> Requirement
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />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<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />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.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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<h4> Get in touch with one of our Heath lease extension solicitors or enfranchisement solicitors
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<p> Regardless of whether you are a tenant or a landlord in Heath,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Heath valuers.
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Heath Lease Extension Case Studies:
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<h5> Kyle, Heath, Cardiff</h5>
<p> Half a year ago Kyle, came perilously close to the 80-year threshold with the lease on his one bedroom apartment in Heath. Having purchased his property two decades ago, the length of the lease was of minimal bearing. Luckily, it dawned on him that he needed to take action soon on a lease extension. Kyle extended the lease just under the wire last July. Kyle and the landlord subsequently agreed on an amount of £5,000 . If he not met the deadline, the price would have gone up by at least £1,150.
<h5>Heath case:</h5>
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Last month we were e-mailed by Dr Dylan Rogers , who
purchased a one bedroom apartment in Heath in September 2002. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar residencies in Heath with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 collected monthly. The lease came to a finish in 2103. Considering the 77 years left we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.
<h5>Heath case:</h5>
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Last Summer we were phoned by Mr and Mrs. P Ali , who
completed a ground floor flat in Heath in March 2012. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparable homes in Heath with 100 year plus lease were worth £260,200. The mid-range ground rent payable was £65 collected yearly. The lease concluded in 2092. Taking into account 66 years remaining we approximated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of professional charges.
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