Top reasons for Heath lease extension

Why you should start your Heath lease extension today:

Increase your lease and increase your Heath property value

Heath leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Heath tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Heath you should check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

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

Leasehold premises in Heath with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lenders may not finance a property on a short lease

The propensity since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has meant the unexpired lease term required by banks has increased. Historically mortgage companies were content with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Heath lease extensions?

Retaining our service gives you better control over the value of your Heath leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Heath Lease Extension Example Cases:

Mia, Heath, Cardiff,

In the wake of 9 months of unsuccessful negotiations with the landlord of her one bedroom flat in Heath, Mia started the lease extension process just as her lease was approaching the critical 80-year mark. The transaction completed in April 2005. The landlord’s charges were negotiated to slightly above 650 GBP.

Heath case:

Last month we were called by Mrs B Williams , who owned a studio flat in Heath in June 2011. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Identical homes in Heath with a long lease were worth £295,000. The mid-range ground rent payable was £50 billed per annum. The lease expired in 2101. Considering the 75 years remaining we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.

Heath case:

Last Autumn we were contacted by Mr and Mrs. C Laurent , who bought a studio apartment in Heath in January 2001. We are asked if we could estimate 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 £250,400. The mid-range amount of ground rent was £65 collected quarterly. The lease ran out on 27 November 2090. Having 64 years left we approximated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 plus costs.