The re-sale value of a leasehold property in Heath depends on how many years the lease has remaining. If it is near to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that all matters can be addressed in advance of the 80 year cut off point. Current legislation entitles Heath qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Heath with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a landlord in Heath,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Heath valuers.
Subsequent to protracted negotiations with the landlord of her two bedroom apartment in Heath, Mollie initiated the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The legal work was concluded in August 2014. The landlord’s costs were kept to an absolute minimum.
Mr John Richardson completed a studio apartment in Heath in September 2008. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative residencies in Heath with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £45 collected per annum. The lease ran out on 21 November 2100. Taking into account 74 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
In 2009 we were called by Mr and Mrs. L Campbell who, having owned a basement apartment in Heath in April 1995. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Similar premises in Heath with a long lease were worth £243,000. The mid-range ground rent payable was £65 collected per annum. The lease expiry date was in 2089. Taking into account 63 years remaining we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus fees.