It’s a harsh certainty that a Heacham residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Heacham property market.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 dips under 80 years - otherwise a higher premium will be payable. Most leasehold owners in Heacham will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancers that we work with procure Heacham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
18 months ago Jacob, started to get close to the 80-year threshold with the lease on his one bedroom flat in Heacham. In buying his home 19 years previously, the unexpired term was of minimal concern. Thankfully, he became aware that he needed to take action soon on Extending the lease. Jacob extended the lease just under the wire in June. Jacob and the landlord who owned the flat above ultimately settled on the final figure of £5,000 . If he had missed the deadline, the sum would have gone up by a minimum £1,000.
In 2014 we were phoned by Mrs C Rivera who, having was assigned a lease of a basement apartment in Heacham in February 2010. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative premises in Heacham with an extended lease were worth £184,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease elapsed on 8 August 2079. Considering the 53 years unexpired we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of legals.
In 2013 we were contacted by Dr F Ricardo who, having acquired a ground floor flat in Heacham in March 2005. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative premises in Heacham with an extended lease were valued about £290,000. The average amount of ground rent was £45 invoiced every twelve months. The lease terminated in 2099. Having 73 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.