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. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring John, started to get near to the eighty-year threshold with the lease on his leasehold flat in Heanor. Having purchased his property 19 years previously, the length of the lease was of little significance. Luckily, he recognised he needed to take action soon on Extending the lease. John arranged for a lease extension just in the nick of time in January. John and the landlord who owned the flat above in the end agreed on an amount of £6,000 . If the lease had slid lower than 80 years, the price would have gone up by at least £1,100.
Last year we were e-mailed by Mrs Rebecca Morris , who took over the lease of a studio flat in Heanor in May 2010. The question was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar properties in Heanor with a long lease were valued about £270,000. The mid-range amount of ground rent was £55 collected quarterly. The lease concluded in 2099. Taking into account 74 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.
Last November we were phoned by Ms Chantelle Evans , who completed a ground floor apartment in Heanor in March 2010. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar homes in Heanor with 100 year plus lease were worth £166,400. The mid-range amount of ground rent was £60 billed quarterly. The lease elapsed in 2079. Taking into account 54 years as a residual term we calculated the premium to the landlord for the lease extension to be between £32,300 and £37,400 not including costs.