The market value of a leasehold property in Heath Hayes depends on how many years the lease has remaining. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be concluded prior to the 80 year mark. Current legislation entitles Heath Hayes qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Using our service will provide you increased control over the value of your Heath Hayes leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Daniel was the the leasehold proprietor of a high value apartment in Heath Hayes being marketed with a lease of just over 59 years outstanding. Daniel on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Daniel to exercise his statutory right. Daniel obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
Last Autumn we were phoned by Mr Isaac Wilson , who took over the lease of a ground floor apartment in Heath Hayes in September 2007. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar premises in Heath Hayes with an extended lease were in the region of £201,200. The mid-range ground rent payable was £55 invoiced every twelve months. The lease came to a finish in 2081. Taking into account 56 years remaining we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including legals.
Mr and Mrs. P Leroy bought a studio flat in Heath Hayes in June 2000. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable flats in Heath Hayes with 100 year plus lease were worth £300,000. The average ground rent payable was £50 collected annually. The lease finished in 2101. Having 76 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.