When it comes to residential leasehold property in Heath Hayes, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Residents in Heath Hayes with a lease drawing near to 81 years unexpired should seriously think of extending it sooner as opposed to later. When a lease has fewer than 80 years remaining, under the current legislation the freeholder is entitled to calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Heath Hayes with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value 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 warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Heath Hayes,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Heath Hayes valuers.
Trailing protracted discussions with the freeholder of her garden flat in Heath Hayes, Phoebe initiated the lease extension process as the 80 year deadline was swiftly advancing. The legal work was finalised in March 2007. The landlord’s fees were restricted to below 650 GBP.
In 2012 we were phoned by Mr Kai Bennett who, having bought a purpose-built flat in Heath Hayes in March 2004. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar premises in Heath Hayes with 100 year plus lease were worth £233,200. The average ground rent payable was £60 invoiced annually. The lease came to a finish on 23 March 2086. Given that there were 61 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 exclusive of fees.
Last February we were e-mailed by Mr Finn André , who bought a basement flat in Heath Hayes in March 2012. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative properties in Heath Hayes with 100 year plus lease were worth £166,800. The average amount of ground rent was £50 collected every twelve months. The lease lapsed in 2075. Considering the 50 years left we calculated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 plus fees.