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 the lease becomes more expensive. Most owners of residential leasehold property in Heanor enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Heanor you really ought to check 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 action to make sure that a lease extension is effected without delay
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Heanor,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Heanor valuers.
Leo was the the leasehold owner of a studio apartment in Heanor on the market with a lease of fraction over 61 years unexpired. Leo on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Leo to invoke his statutory right. Leo procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2010 we were phoned by Mr and Mrs. L Brown who, having completed a studio flat in Heanor in February 2009. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Comparable residencies in Heanor with 100 year plus lease were valued about £208,200. The average amount of ground rent was £65 collected per annum. The lease ended on 14 October 2087. Considering the 61 years outstanding we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 not including expenses.
Last Autumn we were approach by Mr Leon David , who was assigned a lease of a recently refurbished apartment in Heanor in February 2005. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical homes in Heanor with an extended lease were worth £260,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished in 2098. Having 72 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.