Heanor leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Heanor residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Heanor you would be well advised to see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Heanor leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is effected without delay
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
Retaining our service gives you enhanced control over the value of your Heanor leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of unsuccessful discussions with the landlord of her studio flat in Heanor, Megan initiated the lease extension process just as the lease was approaching the crucial 80-year mark. The lease extension was concluded in September 2011. The freeholder’s fees were kept to an absolute minimum.
Mr T Pérez purchased a studio flat in Heanor in February 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Similar homes in Heanor with an extended lease were valued about £235,200. The average ground rent payable was £45 collected yearly. The lease expired in 2091. Having 66 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
Last Autumn we were phoned by Dr Alfie Lee , who owned a first floor apartment in Heanor in August 1999. We are asked if we could estimate the price would be for a 90 year lease extension. Identical properties in Heanor with a long lease were valued about £280,000. The average amount of ground rent was £55 collected monthly. The lease finished in 2102. Having 77 years outstanding we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.