Dickens Heath leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Dickens Heath residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Dickens Heath you would be well advised to see if your lease has between 70 and 90 years left. There are compelling reasons why a Dickens Heath leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Engaging our service gives you enhanced control over the value of your Dickens Heath leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Felix owned a studio apartment in Dickens Heath being marketed with a lease of a few days over sixty years remaining. Felix on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Felix to invoke his statutory right. Felix procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
Last Spring we were called by Mrs Shannon Michel , who bought a purpose-built apartment in Dickens Heath in May 1998. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative premises in Dickens Heath with an extended lease were in the region of £189,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease finished on 7 April 2078. Considering the 53 years left we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including expenses.
In 2012 we were phoned by Mr and Mrs. V González who, having bought a basement flat in Dickens Heath in October 2007. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Similar homes in Dickens Heath with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease termination date was on 4 February 2098. Taking into account 73 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.