It’s a harsh certainty that a Dickens Heath residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Dickens Heath property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. The majority of flat owners in Dickens Heath will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service gives you enhanced control over the value of your Dickens Heath leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the landlord of her one bedroom flat in Dickens Heath, Jessica commenced the lease extension process as the 80 year mark was quickly advancing. The legal work completed in October 2007. The freeholder’s fees were kept to an absolute minimum.
Dr K Turner purchased a studio apartment in Dickens Heath in January 2011. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Identical residencies in Dickens Heath with 100 year plus lease were valued about £216,000. The mid-range amount of ground rent was £60 invoiced monthly. The lease lapsed on 23 April 2084. Given that there were 58 years outstanding we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of fees.
In 2013 we were phoned by Mr and Mrs. I Evans who, having completed a recently refurbished flat in Dickens Heath in January 2001. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparative flats in Dickens Heath with 100 year plus lease were worth £205,000. The average ground rent payable was £50 collected monthly. The lease terminated on 27 November 2105. Given that there were 79 years outstanding we calculated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 not including costs.