There is no doubt about it a leasehold property in Heath is a wasting asset as a result of the diminishing lease term. If the lease has, more than 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Heath will qualify for this right; that being said a lawyer will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Heath with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Heath,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Heath valuers.
Following unsuccessful correspondence with the landlord of her ground floor apartment in Heath, Amelia initiated the lease extension process as the eighty year mark was rapidly nearing. The lease extension was finalised in July 2010. The landlord’s charges were kept to an absolute minimum.
In 2013 we were e-mailed by Mr L Patel who, having acquired a garden flat in Heath in October 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical homes in Heath with a long lease were worth £250,400. The mid-range ground rent payable was £65 invoiced annually. The lease elapsed on 13 October 2088. Given that there were 64 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including legals.
Last Autumn we were approach by Dr W Watson , who moved into a recently refurbished apartment in Heath in March 2004. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable premises in Heath with a long lease were worth £184,000. The mid-range ground rent payable was £55 billed every twelve months. The lease expired on 20 July 2077. Considering the 53 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.