On the balance of probabilities where you own a flat in Heacham you actually own a long leasehold interest over your property
Leasehold premises in Heacham with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Heacham can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 dealing with Heacham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aiden owned a 2 bedroom apartment in Heacham being sold with a lease of fraction over sixty years left. Aiden on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Aiden to exercise his statutory right. Aiden procured expert legal guidance and secured satisfactory deal informally and sell the flat.
Mr and Mrs. J Parker completed a one bedroom apartment in Heacham in September 2010. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar homes in Heacham with a long lease were valued about £166,800. The average ground rent payable was £50 collected yearly. The lease concluded on 26 May 2075. Considering the 50 years unexpired we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of legals.
Last Spring we were e-mailed by Mrs Jodie Lee , who purchased a first floor apartment in Heacham in March 2004. The question was if we could estimate the premium would be for a 90 year extension to my lease. Similar properties in Heacham with an extended lease were valued about £280,000. The mid-range amount of ground rent was £45 invoiced annually. The lease finished in 2095. Considering the 70 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.