On the balance of probabilities where you own a flat in Heath Hayes you actually own a long leasehold interest over your property
Leasehold premises in Heath Hayes with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
Engaging 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 want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Blake, started to get near to the 80-year mark with the lease on his basement flat in Heath Hayes. In buying his home twenty years previously, the lease term was of no bearing. Luckily, he noticed he needed to take steps soon on Extending the lease. Blake extended the lease just under the wire last September. Blake and the landlord who owned the flat above in the end agreed on sum of £6,000 . If he had missed the deadline, the premium would have escalated by at least £950.
In 2014 we were phoned by Mr and Mrs. H Leroy who, having bought a first floor apartment in Heath Hayes in February 2002. We are asked if we could estimate the premium could be to extend the lease by an additional years. Similar residencies in Heath Hayes with an extended lease were worth £270,000. The mid-range ground rent payable was £65 collected yearly. The lease lapsed on 16 September 2093. Considering the 68 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.
In 2014 we were called by Dr Sam Moore who, having acquired a newly refurbished apartment in Heath Hayes in October 1998. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Heath Hayes with an extended lease were in the region of £208,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease elapsed in 2082. Considering the 57 years left we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.