Top reasons for Heath lease extension

Why you should start your Heath lease extension today:

A Heath lease depreciates with the years remaining on the lease.

Heath leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Heath residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Heath you must see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

Heath property with a lease extension has roughly the same value as a freehold

Leasehold properties in Heath with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not loan monies on a short lease

Most mortgage lenders will be unwilling to grant a mortgage on a lease with less than seventy years remaining - although this varies from lender to lender. A buyer will no doubt find it difficult to obtain a mortgage and this could result in your Heath property becoming difficult to sell or refinance.

Get in touch with one of our Heath lease extension solicitors or enfranchisement solicitors

The lawyers 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 lawyer we work with provide it.

Heath Lease Extension Case Summaries:

Kirsty, Heath, Cardiff,

After protracted correspondence with the freeholder of her ground floor apartment in Heath, Kirsty commenced the lease extension process as the 80 year threshold was quickly coming. The legal work completed in March 2008. The freeholder’s costs were kept to an absolute minimum.

Heath case:

Dr Georgina Anderson took over the lease of a ground floor flat in Heath in March 1996. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical residencies in Heath with an extended lease were in the region of £267,600. The mid-range amount of ground rent was £65 billed yearly. The lease terminated in 2093. Given that there were 67 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 plus expenses.

Heath case:

In 2011 we were e-mailed by Mr and Mrs. M García who, having completed a basement apartment in Heath in April 2009. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Heath with 100 year plus lease were worth £206,200. The average ground rent payable was £55 invoiced monthly. The lease finished on 26 July 2082. Considering the 56 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus fees.