There is no doubt about it a leasehold property in Heacham is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. Most flat owners in Heacham will meet the qualifying criteria; nevertheless a lawyer will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Heacham can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Heacham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ali owned a conversion apartment in Heacham on the market with a lease of just over 61 years unexpired. Ali on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Ali to exercise his statutory right. Ali obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. A Anderson was assigned a lease of a one bedroom flat in Heacham in November 2012. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparable flats in Heacham with a long lease were valued around £205,000. The mid-range ground rent payable was £50 billed yearly. The lease elapsed on 25 November 2105. Taking into account 79 years outstanding we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
Mr Daniel Flores purchased a newly refurbished flat in Heacham in October 2012. The question was if we could estimate the price could be to prolong the lease by an additional years. Similar homes in Heacham with an extended lease were in the region of £275,000. The average ground rent payable was £65 collected quarterly. The lease came to a finish on 18 May 2094. Having 68 years left we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.