Heanor leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Heanor tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Heanor you should check if your lease has between 70 and 90 years left. There are compelling reasons why a Heanor flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is effected without delay
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Heanor leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Owen, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Heanor. In buying his property two decades ago, the lease term was of little significance. Fortunately, he realised he needed to take steps soon on a lease extension. Owen arranged for a lease extension at the eleventh hour in August. Owen and the landlord subsequently settled on the final figure of £5,500 . If he failed to meet the deadline, the figure would have gone up by at least £925.
Last year we were e-mailed by Mr and Mrs. H Vincent , who moved into a basement apartment in Heanor in April 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Identical homes in Heanor with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed per annum. The lease ended in 2099. Considering the 74 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
Ms Hannah Edwards took over the lease of a studio apartment in Heanor in January 2010. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparable homes in Heanor with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 billed quarterly. The lease came to a finish in 2079. Having 54 years unexpired we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including expenses.