There is no doubt about it a leasehold flat or house in Heanor is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond one hundred years to run then this decrease may be of little impact however there will become a stage when a lease has less than 80 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 logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Heanor will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased 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 conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
George owned a 2 bedroom apartment in Heanor being marketed with a lease of a few days over fifty eight years outstanding. George informally contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were George to exercise his statutory right. George obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Dr O López moved into a studio apartment in Heanor in November 2004. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Similar properties in Heanor with a long lease were in the region of £285,000. The average ground rent payable was £55 collected yearly. The lease expired on 22 March 2104. Considering the 79 years outstanding we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.
Last Autumn we were e-mailed by Mr and Mrs. T Carter , who purchased a first floor apartment in Heanor in February 2003. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical residencies in Heanor with a long lease were in the region of £193,400. The mid-range amount of ground rent was £65 billed annually. The lease expired in 2084. Considering the 59 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 not including expenses.