The value of Heacham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the unexpired lease term is less than 80 years
Leasehold residencies in Heacham with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Heacham can be a difficult process. We recommend you procure 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 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.
Half a year ago Finley, came critically close to the 80-year threshold with the lease on his first floor flat in Heacham. Having bought his property twenty years ago, the unexpired term was of little concern. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Finley extended the lease just ahead of time in May. Finley and the freeholder via the managing agents subsequently settled on a premium of £5,500 . If he not met the deadline, the sum would have gone up by at least £1,025.
In 2010 we were contacted by Mr and Mrs. L Sharif who, having purchased a newly refurbished apartment in Heacham in August 2003. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Similar properties in Heacham with 100 year plus lease were valued about £235,600. The mid-range ground rent payable was £60 collected annually. The lease termination date was in 2087. Considering the 62 years left we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus expenses.
Last Winter we were approach by Mr and Mrs. C Miller , who was assigned a lease of a first floor flat in Heacham in January 2002. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparable premises in Heacham with a long lease were in the region of £174,200. The mid-range ground rent payable was £55 collected yearly. The lease came to a finish in 2076. Taking into account 51 years remaining we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.