When it comes to domestic leasehold premises in Heckmondwike, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years remaining. Anyone in Heckmondwike with a lease drawing near to 81 years left should seriously think of extending it sooner as opposed to later. Once the lease term has less than eighty years outstanding, under the current statute the landlord can calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a property with over 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 premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Heckmondwike,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 in-depth market knowledge and the close ties they enjoy with Heckmondwike valuers.
Off the back of protracted correspondence with the landlord of her garden apartment in Heckmondwike, Anna initiated the lease extension process just as the lease was approaching the crucial eighty-year mark. The lease extension completed in March 2010. The landlord’s fees were kept to an absolute minimum.
In 2011 we were phoned by Ms Alice Jones who, having was assigned a lease of a one bedroom flat in Heckmondwike in February 1995. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Heckmondwike with an extended lease were in the region of £166,800. The mid-range ground rent payable was £50 collected yearly. The lease expiry date was on 1 June 2075. Considering the 50 years left we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus legals.
Dr H Díaz completed a garden flat in Heckmondwike in June 2006. 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 Heckmondwike with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease terminated in 2095. Having 70 years unexpired we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.